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A new blog from LoupVentures titled “Podcasts Are Apple’s Hobby, Spotify’s Career” was an apt comparison of the two companies’ recent product announcements in the podcast space as Spotify has been pouring money into podcasts while Apple has been content to merely tread water.
“Loup Ventures is a research-driven venture capital firm” so they research subjects that make money and they felt that podcasting was a relevant topic because they felt that it had reached critical mass in America as an entertainment medium with “roughly 40% of Americans age 12 and older listening to podcasts monthly.”
Their contention is that strategies for both companies make sense because “Apple’s future growth or profitability does not hinge on the success of its podcast marketplace” and “In order to achieve mid to high-30% gross margins, similar to Netflix, Spotify must add high-margin revenue, which is what makes podcasts attractive.”