Parcast and Gimlet Media, two podcast studios that Spotify obtained in 2019, shall be blended into an operation known as Spotify Studios, which Elhabashi mentioned will stay generating presentations corresponding to “The Journal,” a day by day news display by means of Gimlet and the Wall Street Journal, in addition to “Stolen,” a chain concerning the residential college device in Canada that was once used to forcibly assimilate the rustic’s Indigenous populations.
The group of workers of Gimlet had ultimate month received a Pulitzer Prize for “Stolen.”
In a statement responding to the layoffs, the union representing Gimlet and Parcast guild participants, the Writers Guild of America, East, mentioned that “as of today, Gimlet and Parcast no longer exist.” Members have been knowledgeable Monday morning that the studios have been being “absorbed into Spotify Studios,” it mentioned.
The union famous that Spotify, which is primarily based in Stockholm, had paid just about $300 million to obtain the 2 studios, however then “wasted that opportunity” thru missteps together with canceling widespread presentations, it mentioned. Spotify additionally limited many presentations to be completely broadcast on its platforms, “limiting the amount of revenue our studios could bring in,” the remark mentioned.
Competitive methods like exclusivity “haven’t really worked in an environment of so, so many podcasts,” mentioned Amanda Lotz, a media marketing consultant and instructional primarily based in Australia. She mentioned the layoffs have been “mainly tied to podcasts becoming overvalued very quickly,” including that the cuts have been a “natural adjustment rather than anything bigger.”
“Podcasts can’t defy the law of supply and demand,” mentioned Gabriel Kahn, a journalism professor on the University of Southern California who research the media business and consults on technique.
“Supply has proliferated. Demand has not,” he mentioned. “Pair that with a dip in advertising spending and something has to give.”
Spotify didn’t in an instant reply to a request for remark. Its inventory was once up 3 % at shut on Monday.
The transfer comes after Spotify ultimate yr laid off group of workers because it canceled 11 shows made by means of Gimlet and Parcast, together with “How to Save a Planet,” a well-liked local weather alternate podcast. The collection of new podcasts dropped by means of just about 77 % from 2020 to 2022, in step with Listen Notes, a podcast database.
Spotify’s announcement that it was once focusing extra on “creators” aligns with its strikes in fresh months to center of attention extra on particular person personalities moderately than presentations like news programming or true-crime sequence that had up to now been a focal point of the podcasting business. Emma Chamberlain, a social media influencer-turned-celebrity, reached a deal ultimate yr to deliver her podcast “Anything Goes,” a mixture of non-public remark, self assist and different recommendation, to Spotify. Videos of the display are to be had completely at the streaming platform, which is best identified for audio than visuals.
But Spotify’s funding in particular person creators has every now and then backfired. Joe Rogan — the debatable host of “The Joe Rogan Experience,” a podcast that has turn into synonymous with an archetype of relatively conservative, younger White males — sparked broad backlash ultimate yr in opposition to Spotify, which was once webhosting his display completely, after he spouted incorrect information concerning the coronavirus. The controversy spurred some creators to tug their track or podcasts from Spotify — the hashtag #DeleteSpotify started trending — and led to inside dissent amongst staff who mentioned they have been embarrassed to paintings for the streaming corporate amid the outcry.