Spotify’s podcasting business has generated endless bad press for the Swedish music streamer: the Joe Rogan controversy, layoffs and cutbacks at its studios and the departure of a key executive. But its latest earnings report flipped the script, with CEO Daniel Ek crediting podcasts with retaining paying customers and helping steer the money-losing company on a path to profit.
The company presented its podcasting business as flourishing in a presentation accompanying the earnings release, noting that podcasts drove a 14% increase in advertising revenue. Podcasts, Ek told analysts on a call Tuesday, increased retention: “And as that happening, it is impacting our business.”