Grover: This Deal Is About Spotify

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After our Monday story featuring reaction from podcasting industry experts about a possible $230 million Spotify/Gimlet deal, Pocket Casts CEO Owen Grover wanted to chime in with his thoughts. Grover tells PBJ this deal is all about Spotify and here’s why…

“This is absolutely more about the buyer than the seller. Spotify is uniquely positioned in this deal because 1) they have the deep pockets to make this acquisition happen; 2) they have the biggest need with their content strategy; and 3) it’s a shot across the bow to the labels, who they’re constantly negotiating with about royalties.

For the industry, it’s another sign that we’re just getting started. Last summer, there were questions about if we’ve reached peak podcast? The answer to that is a resounding “no.” This is a serious exit for Gimlet and shows that you can have a major exit strategy for these content powerhouses.

Also shows how the industry is maturing and serious players want more of the value chain. i.e. BOTH the quality content and the platform-side data. “Once is an incidence, twice is a coincidence, and three times is a trend. The first deal being Scripps/Midroll, the second was iHeart/Stuff Media and now we’ve potentially got Spotify/Gimlet. Definitely a trend but also a white whale when you consider the size of the deal.”