Should Spotify rely on podcasts as its main source of future growth and profit?

[robert124]

Hi everyone, I’m an IB Business Management student working on my internal assessment, and my research question explores whether Spotify should rely on podcasts as its main source of future growth and profit. Over the past few years, Spotify has shifted from focusing mainly on music streaming to investing heavily in podcasts through acquisitions, exclusive creator deals, and new advertising technologies. I’m trying to understand if this strategic change can make Spotify more profitable in the long run or if it might be too risky to depend so much on podcasting. I’d really appreciate insights from the community — for example, how you see Spotify’s future in the podcast space, whether you think podcasts are driving more engagement, or if you believe Spotify should diversify beyond audio. Any perspectives, data, or experiences you share could really help strengthen my analysis. Thanks in advance!

[User300673]

Honestly, podcasts could help Spotify make more profit long term since they don’t have to pay all those music licensing fees. If they build their own exclusive shows, that’s content they own, which means more control and better ad revenue. The only issue is that ads can be unpredictable, and those big exclusive deals cost a lot up front. I think Spotify should keep growing its podcast side but not depend on it completely — balance is key.

[robert124]

While podcasts have potential, relying on them as Spotify’s main growth driver seems risky. The market is becoming saturated, ad revenue can be inconsistent, and many users still value Spotify primarily for music. Overemphasizing podcasts could dilute its core brand and reduce satisfaction among long-time music listeners.