The podcast craze is here to stay and Spotify knows it. Because of this, the platform decided to come up with a new strategy, which boosted podcasts among its users in favor of music. However, new data indicate that Spotify would be losing a lot of money because of a particular style of podcast: those that broadcast ambient sounds and white noise for hours.
Chances are that even you have used them at some point to relax. More and more people are using ambient sounds (waves, rain, nature sounds, etc.) as part of their daily routine. Due to their growing popularity, Spotify’s algorithm has inadvertently promoted them to listeners.
According to a report by Bloomberg, the streaming platform could increase its annual gross profits by about $38 million if it decides to move away from “ambient podcasts.”
In Spotify, podcasts generate money through advertising. Here we must take into consideration that these white noise ‘programs’ are able to accumulate up to 3 million hours consumed. In Bloomberg they have done the math and white noise podcasters could earn around $18,000 per month.
The platform’s first reaction when it learned that the public was being directed to these noise podcasts was to consider banning them. However, Spotify clarifies that this type of podcast is safe on its platform, at least for the time being. Be that as it may, what we may see in the future is a change in Spotify’s algorithms and recommendations to its users.
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