Spotify Ad Revenue Jumps 29% as Podcast Listenership Booms
By Travis Riffe • October 31, 2019
Spotify reported a surprise profit as the streaming giant’s ad revenue rose 29% to $189 million in Q3 from a year earlier. Spotify’s ad sales growth indicates that the company’s efforts to monetize its ad-supported service have become a key source of revenue.
Podcast listenership on Spotify grew 39% in Q3 from the prior quarter, as adoption reached almost 14% of total monthly average users. The platform’s significant podcast growth shows how the company is looking to expand beyond music, while also promoting content it produces in-house. The company needs original content to lessen its dependence on the four major music labels that control more than 90% of the music that streams on Spotify.