When it comes to businesses, there are many tech startups which are trying to diversify their investments to sustain in future. It seems like music streaming company Spotify is also going through same situation because according to recent reports which shows that tech company is thinking of buying podcast giant Gimlet Media for a whopping amount of $200 million. Spotify which is one of the largest music streaming platforms is trying to get ahead of its competitors, and that’s why they have decided to now to buy Gimlet Media which has so far created many popular podcasts. Podcasts industry is already filled up with new and well-established companies also nowadays many people are listening to a daily podcast. Spotify in here has found an excellent business opportunity since it can easily merge its own content with Gimlet media.
From last few months, Spotify was indicating that company wants to enter into video streaming business, but it seems like right now their focus has been shifted to podcast business. However, this is the first time Spotify is going to pay that much amount of money for buying a content company. Spotify has more than 200 million active users who on a daily basis use its music streaming platform. Even after making so many alternatives in its business model the company is not finding a stable financial source of income which will secure its growth.
Podcasting industry is growing at a faster growth rate which no one ever expected would happen, and it seems like Spotify might get its best deal if they buy Gimlet Media. Podcast companies let other users also to upload their own content and earn some amount of money. So if Spotify buys this startup, then it will not have to worry that much about content creation.