Why Spotify's Megadeals Led To Major Losses

Spotify's podcast business, despite signing exclusive deals with famous individuals, is facing significant challenges.

Spotify has invested over $1 billion in building its podcast library, boasting more than 4 million titles.

Spotify's Library

However, the majority of Spotify's podcast shows are not profitable enough to offset the costs of its multi-million-dollar exclusive deals.

Low Profitability

High-profile deals with Harry and Meghan, Kim Kardashian, and the Obamas have ended with substantial net losses for the company.

High-Profile Deals

The company's valuation has declined from $70 billion to around $31 billion, as of the latest data.

Company Valuation

Spotify CFO, Paul Vogel, stated that 2022 was an investment year for the company's podcast division, with plans to reduce operating expenses in 2023.

Investment Year

Spotify's stock prices took a hit due to some of these podcast deals- dropping from 339.32 in December 2020 to 71.22 by November 2022.

Stock Prices

Spotify aims to achieve profitability in its podcast business by 2024, focusing on projected growth in monthly active users.

Future Plans

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