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After the streaming service posted a $230 million loss, Spotify’s chief executive admitted to “getting carried away” with major investments over the past year, including spending on Meghan Markle and Joe Rogan’s podcast.
according to daily mail, Spotify is investing heavily in podcasts and audiobooks in 2022, spending an estimated $1 billion building out its podcast library, which currently holds about 4 million titles; this has led to the company laying off about 600 people this month alone. employees.
However, the profitability of these investments has been questioned, daily mail They said they had “touched gross margins” after “operating expenses grew at twice the rate of Spotify’s revenue.”
In this regard, Spotify CEO Daniel Ek said: “In hindsight, relative to the uncertainty we saw in the market, I may have been a little carried away and over-invested.”
Spotify has reportedly struck a three-year deal with Meghan Markle and Prince Harry, costing around $18 million, under which the Duchess of Sussex’s prototype Podcast has been published.
However, Spotify’s biggest payout came in 2020, when they spent about $200 million on a multi-year deal with American podcast star Joe Rogan.
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