Spotify announced Tuesday that it has entered into a definitive agreement to acquire Parcast, a storytelling-driven podcast studio. Terms of the transaction were not disclosed.
“The addition of Parcast to our growing roster of podcast content will advance our goal of becoming the world’s leading audio platform,” said Dawn Ostroff, Spotify Chief Content Officer.
Parcast runs 18 high-quality scripted, story-driven podcast series including Serial Killers, Unsolved Murders, Cults and Conspiracy Theories and the studio’s first fiction series, Mind’s Eye. These genres are particularly appealing to women, according to Spotify. Over seventy-five percent of the Parcast audience is female.
“In three years, we have created a production house that has grown exponentially and hit a chord with mystery and true-crime fans, especially women, across all 50 states and around the world,” said Ostroff.
Parcast will continue to develop its own stories. In addition to the podcast series Parcast currently runs, the studio is developing more than twenty new scripted shows focused on topics like crimes of passion, the justice system, and the world’s most resilient survivors which Spotify plans to launch by the end of 2019.
Why you should care
The podcast industry as a whole is growing, and Spotify considers itself the second biggest podcasting platform in the world, behind Apple. The acquisition further bolsters both Spotify’s competitive edge and podcast advertising revenues.
The IAB and PwC forecast that podcasting ad revenue will more than double to $659 million by 2020.
While Spotify doesn’t play ads to Premium subscribers, some podcasts might have third-party ads within their episodes. For some marketers trying to reach certain demographics, podcast advertising could prove to be a effective channel. Whitepapers like the IAB’s Podcast Playbook: A Guide for Marketers are a good starting point for marketers interested in exploring more about the opportunity. Spotify’s Ad Studio program also offers extensive resources and tools for advertisers.
More about the deal
Spotify has said it plans to spend up to $500 million on podcast start-ups this year.
In February, Spotify spent $337 million to acquire the Gimlet Media podcast network and production house Anchor.
Spotify claims more than 200 million global users, far behind Apple’s nearly 1 billion users.
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