Spotify Buys Gimlet and Anchor to Become the Netflix of Audio
Spotify acquires podcast producers Gimlet Media and Anchor as part of a $500 million push into original audio content. The company aims to transform from a music streaming service into the world's leading audio platform.
Spotify acquires podcast producers Gimlet Media and Anchor as it expands its mission beyond music to become the world's leading audio platform. CEO Daniel Ek compares this strategic shift to Netflix's investment in original content, noting that podcast listeners currently engage with the service almost twice as much as other users.
The streaming giant plans to spend up to $500 million this year on additional podcasting acquisitions, with the Gimlet deal reportedly exceeding $200 million. Ek states that he eventually expects non-music content to account for more than 20 percent of all listening on Spotify.
Gimlet brings popular fiction and non-fiction shows like "Reply All" and "Homecoming" to Spotify's growing library, while Anchor provides an easy-to-use creation and distribution platform for podcasters. Together, these acquisitions give Spotify both premium original programming and the essential tools to attract independent audio creators.