Spotify’s Bet on Podcasts Is Paying Off With Exclusive Content

Spotify’s efforts to move beyond music and become a go-to destination for podcasts appear to be paying off. The Stockholm-based streaming giant reported Monday morning it climbed to nearly 250 million monthly active users, including 113 million paying customers, during Q3. Combined with an unexpected third-quarter profit, those results spurred a 15% stock price surge. Spotify was quick to point out its strong Q3 coincided with its increased focus on podcasts. The company said 14% of monthly active users now listen to podcasts, or about 35 million people. While that number may seem modest compared to podcast competitors, when you look at it in terms of growth — the key metric investors watch for at tech companies — it becomes much more impressive. Spotify, in its letter to shareholders, said it had seen “exponential growth” in the amount of time users interacted with podcasts, with a 39% quarter-over-quarter spike in hours spent listening to podcasts. (Spotify did not disclose the total number of hours spent listening to podcasts.) This is especially noteworthy for both Spotify and its shareholders, since podcast listeners on its ad-free service are converting to paying customers at a faster clip than users not listening to podcasts...

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