Spotify’s $100 million-plus Anchor acquisition is seemingly paying off. In information released today as a part of its annual Wrapped look-back on the yr, the corporate says Anchor, which makes podcast creation software program, powered 80 p.c of latest podcasts on Spotify this yr, which means the software program contributed greater than 1 million reveals to Spotify’s catalog in 2020 alone. General, Anchor powers 70 p.c of Spotify’s complete podcast catalog, or round 1.3 million out of over 1.9 million reveals.
Individuals additionally appear to be listening to that content material. Spotify says Anchor reveals account for extra consumption, by way of time spent listening, than another third-party podcast internet hosting or distribution supplier on its platform. (Not counting reveals owned or operated by Spotify.) This sounds stunning, no less than to me, particularly provided that large networks like NPR, The New York Occasions, and Wondery all put their reveals on Spotify. However Mike Mignano, head of podcast mission at Spotify, says the information level speaks to the massive world podcasting ecosystem that folks won’t know exists. With greater than one million Anchor reveals on the platform, listening time provides up quick, even when some reveals solely have a small group of devoted followers.
“I believe individuals nonetheless have a tendency to think about podcasting as being this kind of small, area of interest group, and I believe the 2020 development has highlighted that it’s very, in a short time grown far past that, and there’s simply a lot extra scale and depth to the medium than I believe individuals understand,” he says. “We really feel like for all of the individuals on the earth that wish to say one thing, or wish to share their voice, or wish to have themselves heard, there might be really far, far, much more new podcasts over the following couple of years.”
Spotify says Anchor’s prime 5 markets in 2020, by complete variety of reveals, have been the US, Brazil, Indonesia, Mexico, and Nice Britain. In Indonesia, Spotify signed 9 reveals to change into exclusives. In the meantime, the fastest-growing markets, trying on the common month-to-month improve in new reveals, are India, Mexico, Brazil, Argentina, and Indonesia. India accounts for practically 40,000 Anchor-made reveals and has been rising at a mean of twenty-two p.c month-over-month improve in 2020.
Nonetheless, many of those creators won’t be getting cash via their podcasting, or no less than not with the assistance of Spotify. Though Anchor helps monetization and routinely inserts advertisements into taking part reveals, the characteristic is barely accessible within the US. So whereas a wide range of international locations contribute to Anchor’s rising attain, the creators on the platform doubtless aren’t making a dwelling, and even any earnings, due to their podcasting work. (Mignano and a spokesperson declined to touch upon when monetization may roll out to different markets, though within the US, a spokesperson says greater than 100,000 creators have generated income via Anchor’s sponsorships product.
Spotify itself had one other large podcasting yr. It made two large acquisitions — The Ringer and Megaphone — and signed a number of unique offers with figures like Joe Rogan and Kim Kardashian West. Yesterday, it stated two of the most well-liked reveals on the platform this yr embrace The Joe Rogan Expertise and The Michelle Obama Podcast, each of which have been main investments for the corporate. However not each present entails a recognizable title, which is why the Anchor deal was a vital a part of Spotify’s podcast technique. Individuals everywhere in the world are making reveals with Spotify-owned software program. Whether or not they can change into superstars and earn a living off that work, although, is the following problem for Spotify, no less than if it needs to retain these podcasters within the years to come back.