Spotify's path in podcasts: from originals to video

Edu Alonso, Head of Podcast para el sur y este de Europa de Spotify, reviews the trajectory of the on-demand audio platform in the field of podcasts and video podcasts, areas in constant redefinition in which the originals strategy has given way to an approach of aggregating content generated by the users themselves (UGC).

In 2019, Spotify opened its doors to podcasts. In a timid way and relying on limited content, the Swedish music platform introduced this new one into its infrastructure. radio trend, diversifying your business and offering new options to your subscribers. The emergence of this aspect in Spain took place a year later, when the company identified the potential of reinforcing its catalog with original content and produced the memorable XRey, a format of The Story Lab that introduced the service into the conversation of this new sound phenomenon.

In an environment of visual overstimulation, disconnection through audio had all the sense of the world. Delving into a historical episode or discovering cultural products on demand while carrying out different tasks represented a revolution in the audio landscape. Little by little, either through fragmentation of radio formats or with the creation of original content, a new industrial aspect of entertainment was defined, which has survived to this day, becoming a mass phenomenon. In those first steps of Spotify, the service had 10 million podcast listeners. Today, it exceeds 270 million globally.

In these six years, like other cultural services, the podcast is going through a redefinition in content and form. Those cultural and informational pills that marked the focus of its first Hispanic batch have given way to the conversational phenomenon; The topic, the research or its focus no longer matters so much, but rather the charismatic personalities that provide their proposal to the industry. He feeling of belonging to a community comes to the fore, and the fan phenomenon underlies an increasingly visual medium. The phenomenon of Video -toolcast accompanies the main hits of the podcast, and the technological platforms adapt to provide a proposal in which the concept audio-first It is no longer an axiom of the format.

Content platforms also adapt to this cultural and industrial evolution. For some time now, Spotify has decided to leave standby he sponsorship of original podcasts to consolidate as content aggregator, regardless of whether these formats are supported by other platforms or are generated by users. The company focuses on providing the technological tools necessary for its commercial management, as well as offering UX improvements and maintaining its relevance among the Spanish public with diverse face-to-face and industrial initiatives, such as its Radar program, which seeks to support emerging national projects to help them consolidate their proposal.

Edu Alonsohow Head of Podcast para el sur y este de Europa de Spotify, cuenta con una posición privilegiada para identificar la evolución y tendencias del podcast dentro y fuera de la propia plataforma. En este reportaje, arroja todas las claves de un fenómeno que todavía has shown no signs of weakness in the Spanish audiovisual market.

The importance of the podcast for Spotify

Anchor, Gimlet y Megaphone: Spotify's arrival in the podcast field was boosted by the purchase of three giants from that podcasting proto-market. The investment, of more than 550 million dollars, allowed the company to shape its catalog and, above all, improve its technological proposal to host this type of content. Today, one in three listeners of Spotify in Spain listens to podcasts, placing the market in ninth position in the world within the platform: "In Spain, we have always had a tradition of entertainment. This has been transferred to the world of podcasts: a large audience has found a format with which to connect with the creators."

"We are an intermediary, a connection platform; for us, betting on these verticals fulfills a primary purpose: meeting people's need for different forms of entertainment."

Spotify took its first steps in the market as a diversification strategy and “completing an offer”, a process that continues today with the launch in some markets of audiolibers o to audio quality improvement. Now, these formats have become more than just a complement. "The average Spotify user always wants more. Music is sometimes not enough, so we wanted to offer a better platform with a much more diverse content offering," explains Alonso, who identifies that this strategy is in line with its nature as a company.purely technological”: “Our focus is finding solutions to the problems that both listeners and creators have. In the end, we are an intermediary, a connection platform; For us, betting on these verticals fulfills a primary purpose: meeting people's need for different forms of entertainment."

A present without original podcasts

Produced by Toni Garrido and directed by Álvaro de Cózar, XRey It was a great letter of introduction to the potential of podcasts in Spain. This careful production, which shed light on specific episodes in the life of King Emeritus Juan Carlos I, premiered in that pandemic May, a time when the Spanish population rethinking his relationship with entertainment. "It was an experiment, but it was very successful. From my point of view, it was a turning point in the industry. It was shown that a non-fiction narrative could be made in audio and that it could work. We generated a notoriety for the format that no one had achieved before, and it was all thanks to the alliances with the best products that were available at the time," recalls the head of Spotify.

Through originals, Spotify achieved a leadership position In the field of podcasts, resignifying his role in audio consumption and promoting a market with ideas, but without the suitable showcase.

The success of XRey led Spotify to promote a policy which translated into boost of 50 original titles, creating one of the most solid audio-on-demand catalogs of the moment. The company tested all types of genres, from the conversational, which would end up consolidating as a state trend, to the documentary: “The name of Spotify was associated with the winners of the Ondas Awards for several consecutive years. First, with XRey; later, with a Weekly Deformed which was also exclusive to Spotify, and was also decorated Mystery in the Moral, another narrative from 2022.”

Through originals, Spotify achieved a leadership position in the field of podcasts, redefining its role in audio consumption and promoting a market with ideas, but without the adequate showcase to convey them without direct support from brands or without the platforms associated with traditional radio, which little by little built a solid complement to its linear offering. However, as Alonso explains, “the industry has changed”.

The originals They are no longer part of Spotify's strategy: "In 2020, there was an urgent need to produce more content and help boost the industry, but it had certain limitations, since we could not support more than 10 or 15 titles a year. At the same time, there were also certain limitations associated with the distribution of the IP and derivatives. Therefore, we decided to change this model to the current one."

Spotify's UGC strategy

Spotify still maintains the “original” seal on its historical catalog and, this year, the concept of exclusivity survives with a single title: the podcast of Dr. Marian Rojas Estapé. “We are not completely closing the door to the production of more original content, but where we are putting more focus is on the other part: that of being a platform,” says Alonso.

“We do not close the door completely to the production of more original content, but where we are putting more focus is on the other part: that of be a platform”.

Currently, Spotify is focusing on the tool development for, through the monetization, distribution and audience building, help creators and Partners to manage and make available content on the platform, providing solutions so that they have reach and return. This decision comes from nature freemium of the platform, which means that in the 180 markets in which the audio service operates, more than 600 million users, but also in the consolidation of the industry and the “unlocking” of its advertising market, which already has specialized production companies and a base of brands that support podcasts via sponsorships, branding, advertisements or product placement, among other ways.

Currently on Spotify they are their own podcasters and producers those who have a full control over your IP and they can decide how and where to distribute it. To do this, the technology company makes platforms such as Megaphone or Spotify for Creators, but also develops cross integrations with services like Patreon, so that users can unlock exclusive content: “In the end, what we are trying to do is offer many more tools and freedom to creators.”

The catch-all of podcasts

This decision by Spotify is not without risks. Like other open platforms on the market, the user has at their disposal a ocean of podcasts from which to choose. There is no editorial criteria governing the catalog, but open doors for users to upload their content whenever they respect the limits common in matters of copyright and content: “We are a plataforma UGC, user generated content, which allows anyone who respects the rules to upload their podcast. If you decide to chat with your cousin for five minutes and upload it, you are free to do so. We do not want to have a role gatekeepers, controlling who enters and who does not.”

“We are a plataforma UGC, user generated content, which allows anyone who respects the rules to upload their podcast. If you decide to chat with your cousin for five minutes and upload it, you are free to do so.”

This philosophy causes the Spotify catalog, like so many other open platforms, is found fragmented. It is common to see incomplete seasons, abandoned projects or podcast without its most recent installments, which continue to be published on other audio services. To address this situation, the Spotify team relies on the editorial curation and in technological tools to guide the listener in their listening experience: "At this point, we have to identify indicators of relevance. To do this, we analyze the behavior of the audience, we have a human editorial team and we deploy more technological or algorithmic tools based on Machine Learning or artificial intelligence (…) We are far from being perfect, but we are constantly working to improve the platform and better understand our users.”

AI comes to the podcast

The generation of synthetic voice and its use for audiovisual pieces has become normalized in the generation of content aimed at social networks, which could open its doors to other types of content such as podcasts. In Spain, the first examples of pieces created entirely by this type of solutions have already been given. The creative agency Prodigious Volcano was a pioneer in 2022 with Synthetic stories, a format that used generative AI tools using Chat GPT and text-to-speech models, while in 2023 the American NPR did the same by producing an episode of the format Planet Money with voice cloning tools.

“We have nothing against the IA. On the contrary: you have to embrace change and understand how it can help us in the most creative and operational”.

In just three years, AI-based content generation tools have evolved considerably. For now, Spotify does not have a policy to put limits on this type of content, which will surely play an important role in viewers' consumption preferences. It is a trend, in short, pending consolidation: “To this day, we do not know of any podcast that has generated an international impact that uses this type of technology.”

Alonso, on the contrary, is aware that currently there are deploying specific solutions of AI to support the production of podcasts: "We have nothing against AI. On the contrary: we must embrace change and understand how it can help us in the most creative and operational part." One of these possible uses may be format translation, a process that is already used in the dubbing industry and that allows maintaining the speaker's original timbre and tone: "They are quite interesting projects. In the end, the idea is to use technological tools to access new markets. As long as they do not involve infringement of copyright or impact in some way on some right, it will be something that we will embrace.”

The video podcast: an unstoppable phenomenon

The second revolution of the podcast industry has been accompanied by the video. Contradicting those pillars that allowed the format to consolidate among listeners' preferences, those concepts of background content or visual disconnection, this new trend is reflected in the most successful formats on the platform: nine of the ten most listened to formats in Spain use visual support integrated directly into Spotify.

“The initial premise was a strategy audio first. We considered that the video had to be a complement, and that, if it was removed, the content had to continue working. Reality has hit us a bit in the face. In the end, creators and listeners decide how to use the video and what their experience is,” says Alonso, aware of the unpredictability of his own users' consumption habits.

“The initial premise was a strategy audio first. We considered that the video had to be a complement, and that, if it was removed, the content had to continue working. Reality has hit us a bit in the face. In the end, creators and listeners decide how to use the video and what their experience is.”

According to a study conducted by the platform in the United States, the 64% of users prefer to have video accompanying their podcasts. And what is more surprising: 70% of users who consume video podcasts decide see the video in closeup, whether on mobile or television.

With 330.000 podcasts with video its catalog (all of them in Full HD resolution), and a 20% of Spanish creators who choose this option, the change in trend is a reality. Until the video podcast is consolidated and standardized as a podcasting standard, Spotify works by integrate both aspects to improve the consumption experience of each user: "The ideal is this "Choose your own adventure" in which the consumer can migrate between the two experiences seamlessly. You can go on the bus watching the podcast, but, when it is your stop, you can put your cell phone in your pocket and continue listening to it without interruptions."

Podcasts and fan phenomenon

Podcasts, whether visual or traditional, find much of their success in interrelation between talent and its audience. The rise of conversational podcasts and the double role of their hosts as influencers has transformed the management of their communities, moving from the radio approach to bringing it closer to the field of musical artists. He fan phenomenon and the feeling of belonging They act as drivers of an industry that finds great opportunities in networks, but also in face-to-face events.

"The public is eager to consume content and enter into communion with their favorite creators. There is a fan phenomenon within the podcast that, obviously, we have to reflect in our strategy."

It is increasingly common for recordings of certain formats, which are frequently made before a small audience, to multiply their commitment to bring together their communities in theaters or auditoriums. Spotify has joined this trend with its Spotify Podcast Live Sessions, a live podcast event that filled the Madrid Press Palace with four of the most successful comedy video podcasts: The Ruin, Little is said, Venice and Kings of Palique burn. "We offered the possibility to the biggest fans of these shows to attend a live recording. People came super-dedicated to the experience. It shows us that the public is eager to consume content and enter into communion with their favorite creators. There is a fan phenomenon within the podcast that, obviously, we have to reflect in our strategy," Alonso explains.

This interaction could be transferred in the future to technological ecosystem of the platform. Beyond the already established interaction through comments, Spotify could implement some of the tools associated with the musical world, such as direct ticket sales on the platform or merchandising: “I think it won't take long to arrive.”

The present and future opportunities of the podcast

The ability to anticipate two consolidated trends such as podcasts and video podcasts confirms the validity of the strategy. Spotify. The company, relying on innovation and investment in technology, actively works to follow listeners' consumption habits and meet the needs of the creative community. “We are also immersed in the AI revolution. We don't know very well where it is going to take us, but we are already doing different pilots to validate tools internally,” explains Alonso.

"Sticking to the strict definition of what is a podcast and what is not, does not help. (...). We must be transversal. In the end, our function is to connect an audience with a creator."

At the content level, the head of Spotify's podcast area detects opportunities that "are not being taken advantage of" in areas such as education, the children's world or the fitness offer: "There are different categories of content in which I see an opportunity, but we will not be in charge of doing it alone. There has to be an need on the part of the spectators and a commitment from the creators”.

In parallel, Alonso identifies a “great margin for expansion” in different lines that will allow the Video -toolcast “grow at different angles.” To achieve this, it will be necessary, once again, redefine the very concept of podcast. It is the most coherent decision in an industry in which consumer habits, and the formats themselves, evolve to capture the attention of the always voracious and non-conformist consumer of content: "Sticking to the strict definition of what is a podcast and what is not does not help. We have to understand, as a platform, how we can provide a better service to creators and listeners, regardless of whether what we distribute is fiction, a documentary, a video podcast, a conversational video, a fitness video or a yoga session. We must be transversal. In the end, our function is to connect an audience with a creator."

A report by Sergio Julián Gómez