Spotify’s Podcast Aggregation Play

Ben Thompson, writing at Stratechery:

Basically, the wall that Spotify can put up around podcasts is much stronger than the one it can put up around music, and podcasters have fewer alternatives. Or, to put it another way, podcasts are a market where Spotify — to the extent they are willing to pay — actually has power over supply. […]

To put it another way, Anchor is a means of generating supply, and it is supply that has always stood in the way of Spotify’s ambitions to be an Aggregator. Aggregators bring suppliers onto the platform on their terms; Spotify, on the other hand, has had to scratch and claw to get labels to give them the music they needed to be viable. And again, the acquisition of Gimlet Media, while better from a long-term leverage perspective, is not a big improvement: Spotify almost certainly overpaid if the only goal was to obtain supply.

This is, as always, a very smart take.