Streaming Music service Spotify is reportedly in talks to buy start-up podcast network Gimlet Media, according to thereports ofRecode. The company plans to pay more than $200 million to acquire Gimlet Media, it the startup behind the popular podcasts like “Crimetown” and “Reply All.”
Gimlet Media was founded by Alex Blumberg who is the former producer forThis American Lifeand Matthew Lieber in 2014, they have remained one of the prominent figures in the growing Podcasts market. It has produced a series of shows like business seriesStartUp, to true crime seriesCrimetown, to narrative dramas likeHomecoming,Sandra, andThe Horror of Dolores Roach.
Recently, the company has extended its attention from podcasting to film and television as seen by its recent deal with Amazon to madeHomecominginto a series. As the podcasting world is increasing day by day Spotify interest also become increased to explore this field. Earlier this year, Hot Pod’s Nick Quah said that the streaming service has bee working to develop its streaming strategy and that the company had made the market a priority for the coming year.
Quah noticed that Spotify would want to create its own content because it would get benefit from ads that it could run on podcasts. Spotify has already made a deal to bring in some original shows like Amy Schumer’s3 Girls, 1 Keith, and is also streaming some shows, like the upcoming season ofCrimetown, exclusively on its platform.
Moreover, by acquiring a studio like Gimlet would allow Spotify to create its own lines of original content and intellectual property. That would ultimately benefit not only the additional users and ad revenue, plus it could keep its users locked in its own platform rather than having them to listen to podcasts on other platforms like Apple Podcasts or Stitcher.