Spotify ends contracts for two award-winning podcasts from Gimlet Media

Photo of author
Written By Pinang Driod

© Reuters.

NEW YORK – Spotify (NYSE:) has announced it will not renew contracts for two acclaimed podcasts, “Stolen” and “Heavyweight.” These series, produced by Gimlet Media which is owned by Spotify, have been given the green light to seek new homes following their final seasons on the streaming platform. This decision comes as part of Spotify’s strategic shift in their podcasting approach amidst a challenging economic climate.

“Stolen,” hosted by Pulitzer Prize-winning journalist Connie Walker, and “Heavyweight,” hosted by Jonathan Goldstein, have both garnered significant audiences and critical acclaim during their runs. Despite their success, Spotify has praised the teams behind these podcasts and is committed to supporting them through their transition to new platforms.

The move to not renew these shows aligns with Spotify’s broader realignment of resources as the company aims for profitability. The streaming giant has made significant investments in the podcasting space during the pandemic, including the purchases of Gimlet Media for $230 million and The Ringer for $200 million. These acquisitions were part of a larger buying spree in the industry, which also saw Amazon (NASDAQ:) acquiring Wondery for $300 million and SiriusXM purchasing Stitcher for $325 million.

However, with economic headwinds and a reduction in ad spending affecting many media companies, Spotify has had to make adjustments. This includes cutting its workforce by approximately one-fifth this year alone. Despite these changes, U.S. engagement levels with podcasts remain high according to Edison Research.

As part of its revised strategy, Spotify is now focusing on leveraging celebrity-driven content to draw in listeners. Notable figures like Bruce Springsteen and Barack Obama are among those with whom Spotify seeks to capitalize on their substantial fan bases.

InvestingPro Insights

As Spotify navigates through strategic shifts in its podcasting approach, it’s important to consider the company’s financial health and market performance. According to InvestingPro data, Spotify has a market cap of 38.85 billion USD. Despite a challenging economic environment, the company has managed to maintain revenue growth, with a 13.26% increase over the last twelve months as of Q3 2023. However, the company’s profitability remains under scrutiny, as indicated by a negative P/E ratio of -48.91, which further declined to -63.24 when adjusted for the last twelve months as of Q3 2023.

Two notable InvestingPro Tips for Spotify include its strong cash position relative to debt and the concerning trend of slowing revenue growth. Spotify holds more cash than debt, which is a positive sign of financial stability. On the flip side, the slowdown in revenue growth could be a point of concern for investors, especially as the company seeks to realign its podcasting strategy and drive towards profitability.

For those looking to delve deeper into Spotify’s financials, the InvestingPro platform offers additional insights. With the current special Cyber Monday sale, you can now get up to 60% off on an InvestingPro subscription. Plus, use the coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription. There are 15 additional InvestingPro Tips available to subscribers, providing a comprehensive analysis that can help investors make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source

Leave a Comment

egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr egr