How the coronavirus crisis has helped Spotify's podcast business

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At a time when many Hollywood productions have been shelved and workers are losing their jobs, Spotify is continuing to see rapid growth in its podcast business.

Some are calling it the second golden age of audio.

The coronavirus has had mixed effects on the industry. Many people listen to podcasts when they are commuting or are at the gym. “People are at home,” said Mark McCrery, chief executive of Podtrac Inc., a Washington D.C.-based firm that tracks the industry. “They are not commuting. They are staying inside.”Still, U.S. weekly podcast downloads were up 20% for the week ending April 19 compared to the first week of January, Podtrac said. Some categories such as news saw a 57% increase, while other topics dropped off , according to Podtrac.

Some companies, including New York-based Luminary and San Antonio-based iHeartMedia Inc., have laid off or furloughed workers and cut salaries amid the coronavirus crisis. Luminary sells $4.99 monthly subscriptions, while iHeartMedia has free, ad-supported podcasts and operates radio stations.

In contrast to much of Hollywood, Wondery, Spotify and other podcast companies such as New York-based Wonder Media Network“Podcasting is still an extremely healthy and growing medium,” Spotify’s Holt said. “I think we’re going to be fine.”

 

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