As is, record labels take about 75% of Spotify\u2019s revenue<\/a>. So, they\u2019re making moves toward original content.<\/p>\n As we mentioned, Spotify needs to get in on the content game to make money. So the plan is to take over podcasting.\u00a0<\/strong>The streaming company announced this month that they had acquired Gimlet Media and Anchor<\/a>.<\/p>\n For those who don\u2019t know,\u00a0Gimlet<\/a> is a podcasting network known for shows like Reply All<\/a> and Heavyweight<\/a>, while Anchor<\/a> is a tool that helps podcasters produce and distribute podcasts.<\/p>\n These acquisitions signal a move toward a podcasting version of something called vertical integration.<\/strong> What this means is, one company buys two or more parts of the supply chain \u2014 an example is a store like Target that owns the manufacturing of its store brands, controls the distribution process, then sells those products in its stores.<\/p>\n Then, in the case of Target\u2019s generic brand, passes the savings on to the customer.<\/p>\n 10 simple steps to creating your first podcast<\/p>\r\n Learn How \u25ba<\/a>\r\n <\/div>\r\n <\/div>\r\n <\/a>\r\n <\/div>\r\n<\/div>\n Interestingly this vertical approach seems to apply only to podcasting. With podcasting, the medium is only starting to pick up mainstream steam. Though some podcasts are hugely popular, many still have a DIY vibe.<\/p>\n Spotify has plans to spend up to $500m on podcast-centered acquisitions.<\/strong> Anchor and Gimlet are the tips of the iceberg.<\/p>\n TechCrunch raises an interesting point about Spotify\u2019s focus on casts — the app simply added podcasts into the fold, alongside the music. The company hasn\u2019t tried to force users to separate apps for podcasts and music like Apple. Rather, they’ve opted to keep things together inside the one app.<\/p>\n Second, Spotify is one of the few podcast platforms with a decent discovery feature<\/strong>, which has long been a pain point for the slow-growing industry.<\/p>\n That said, the discovery feature could be improved. As is stands, Spotify’s podcast section does make a few recommendations, but the content doesn’t always match up with listening preferences.<\/p>\n The 4 best apps for listening to podcasts<\/p>\r\n Read Now \u25ba<\/a>\r\n <\/div>\r\n <\/div>\r\n <\/a>\r\n <\/div>\r\n<\/div>\n According to Billboard, Spotify has started licensing some songs<\/a> from artists directly. But it seems that right now, the streaming service is trying to stay away from competing with record labels.<\/p>\n While they don\u2019t seem to be publicizing this much, Spotify does<\/em> offer artists more money to work with them directly<\/strong> \u2014 so they technically are<\/em> competing with record labels.<\/p>\n Spotify doesn\u2019t ask for exclusive rights from those artists who work directly with the streaming service. Those artists can also sell their music to Apple and Google, or whoever else.<\/p>\n It\u2019s also important to note that Spotify isn\u2019t trying to become a label. But they are paving the way for artists who want to own their content and make deals with distributors, rather than working with a label who owns that music.<\/p>\nSpotify acquires Gimlet and Anchor<\/h2>\n
![\"gimlet](\"https:\/\/articles-img.sftcdn.net\/sft\/articles\/auto-mapping-folder\/sites\/3\/2021\/05\/Gimlet_podcasts.jpg\" "\\"Gimlet")
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\r\n <\/div>\r\n Podcasting only? Not exactly<\/h3>\n
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\r\n <\/div>\r\n What about music?<\/h3>\n
![\"Spotify\"](\"https:\/\/images.sftcdn.net\/images\/t_app-logo-l,f_auto,dpr_auto\/p\/f10a1efa-9b26-11e6-a3fc-00163ed833e7\/1056532993\/spotify-logo.png\"){kind=logo}
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