Spotify CFO Paul Vogel Predicts Prod Casting Profits in the next 12 to 24 Months
Spotify CFO Paul Vogel has indicated that Podcasting is going to turn huge profits in the next 12 to 24 months despite the stiff competition from other competitors. He shed light during an interview conducted at Evercore’s Tech Conference. According to him, Company has invested a substantial amount in Podcasts in recent years by acquiring the services of companies like Podsights, Chartable, Whooshkaa, Megaphone, and Gimlet Media as well as on Programming Side (The Joe Rogan Experience, Meghan Markle’s Archetype and Alex Cooper’s Call Her Daddy).
Upon acquiring the services of Programmers and podcast companies, Vogel Said,” It helps engagement as well as help user’s growth. We have seen when people engage with both music and Podcasting, they are more likely to retain services at a higher rate and tends to spend more time on the services.”
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According to Paul Vogel, the Profitability of the Podcast is on the horizon despite stiff Competitors like YouTube, which launched a dedicated page for Podcasts last month, whereas SiriusXM spent over a whopping $150 million to buy Conan O’Brien’s Podcast Company.
Paul Vogel further Stated, “the second thing which makes us believe in profits is the business model of Podcasting, which is very strong over the long run.” Vogel indicated, “I said on investors day that 2022 will be the peak period in terms of the impact of Podcast, the negative implications that Podcasting has over the Gross Margins, but this be turning tables to be a Profitable over next 12 to 24 months which will be resulting in higher gross margins.
Spotify executive believes that the Company will be getting benefits from the growing podcast business overall. He said, “we have brought innovations in Podcasting and made it more enticing for the dedicated Podcast users as well as the Casual podcast Users. Now the Podcast business is twice as big as people thought it would be and growing at a rapid rate that anybody would have thought. Now more people are wanting to do the same as we have done, because of the success achieved by us.”
On economic uncertainty worldwide, Paul Vogel expressed his thoughts “we are fully aware of what’s going on in the global market. There is a lot of uncertainty, but luckily it has not impacted our targets at all. We have achieved valuable user’s growth; we have had subscriber’s growth. The advertising saw up and downs. There have been few downs in third quarter. But overall, we feel very good about the business we have in these crunching times.”