Earlier this year, and doubling down on its strategy to gain more advertising revenue, Spotify unveiled three key acquisitions.
Shelling out over $340 million, the streaming music giant both Gimlet Media and Anchor. The company then spent an additional $55.8 million to acquire Parcast.
Speaking about its long-term podcast revenue plan in its Q1 2019 financial report, Spotify ,
“Over time, our ambition is to develop a more robust advertising solution for podcasts that will allow us to layer in the kind targeting, measurement, and reporting capabilities we have for the core Ad-Supported business.”
Now, the company has unveiled new tools for podcasters.
Say hello to Soundtrap.
Adding podcasts to its service makes perfect sense for Spotify.
According to multinational investment bank Morgan Stanley, the streaming music giant , not only its subscribers’ “great loyalty to the platform,” but its users’ high podcast consumption.
On average, Spotify users consume 4.4 hours content per week, beating Apple Music’s 3.7 hours. Amazon Music Unlimited’s users only consumed 1.7 hours podcast content.
In addition, amongst “’pure play’ à la carte subscription streaming services,” Spotify has the highest reported satisfaction. Two-thirds all music streaming also happens in playlists, which the company has dominated.
Yet, the streaming music giant had largely neglected podcasts. Morgan Stanley found both freemium and paid users “love podcasts more than any other subscriber group.” Paid subscribers, for example, listen to 5.2 hours podcasts per week. That’s 48 minutes more than users on Apple Music.
Yet, most users haven’t consumed podcasts on Spotify.
With all three acquisitions as well as a key purchase two years ago, the streaming music giant has now sought to change that.
In late 2017, Spotify Stockholm-based online music recording studio, Startup. To attract up-and-coming podcasters, the company has unveiled Soundtrap for Storytellers.
Priced at $14.99 a month, with an annual plan costing $11.99 a month, Soundtrap will allow podcasters to focus “on the art storytelling.” The new subscription platform aims to reduce the time and investment needed to make podcasts sound pressional.
The company explains,
“Soundtrap for Storytellers] is a comprehensive podcast creation tool that fers recording, remote multi-track interviewing with video chat, smart editing audio as a text document, full audio production, direct-to-Spotify publishing the podcast, and transcript publishing to optimize SEO all in one service.”
Users can access the full suite tools on desktops, and a limited set recording and editing services on Android and iOS devices. The complete suite includes pre-populated tracks for recording audio along with a timeline and a built-in video chat feature. Once you’ve finished recording, Soundtrap finalizes your audio file with an EQ, compressor, and a limiter suited for podcasts.
Speaking about the new fering, Per Emanuelsson, Co-Founder Soundtrap, explained,
“The platform itself was built around solving some the biggest pain points for podcasters – editing, transcribing, remote interviewing and adding sound effects – and providing one, streamlined platform that contains every part the podcast creation process.”