Spotify Results Spell Dark Times For Podcasting As Commuters Stay Home

TOPLINE

The podcasting business is experiencing acute pain during the pandemic, Spotify reported Wednesday morning, due to declining advertising revenue and disruption to consumers’ listening habits.

KEY FACTS

Key background

Spotify’s warnings about podcasting corroborate findings by analytics firm Podtrac. Compared to the first week of March, podcast streams and downloads were down 23% during peak commute times between April 20-26. The dropoff was steepest when local governments started issuing stay-at-home orders in mid-March, and has since stabilized, with Podtrac seeing a 4% increase in downloads in the past week. Spotify also noted that it expects the coronavirus’ effects on podcasts to be temporary.

Big number 

$196 million. That is how much Spotify may end up spending on its acquisition of Bill Simmons’ The Ringer, with the low end of the price target still worth more than $140 million. The deal was announced in early February, before the coronavirus devastated the U.S. and Europe. With live sports cancelled for the time being, podcasts about sports have been hit particularly hard, according to Podtrac. 

Further reading

Spotify Will Acquire Bill Simmons’ The Ringer (Forbes)

Crime Does Pay: ‘My Favorite Murder’ Stars Join Joe Rogan As Nation’s Highest-Earning Podcasters (Forbes)

Streaming-Only Films Will Now Be Considered For Oscar Nomination Amid Coronavirus (Forbes)

Potbelly, Shake Shack, Axios: Here Are All The Companies Returning PPP Money After Public Backlash  (Forbes)

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