Why Spotify Is Not A Music Company

As investors have predicted, Spotify is betting on becoming the Netflix of audio — for better or for worse.

On October 28, 2018, as I was on Spotify’s mobile app searching for a certain music playlist I had made for myself, I received the following, unsolicited push notification:

The notification was for Crimetown, a serial podcast produced by Gimlet Media that dives into the history of organized crime in American cities. Nearly one month before sending me this notification, Spotify had announced that it would be the exclusive distributor for the show’s second season.

At first I was perplexed, since I use Spotify first and foremost as a music fan. But upon doing further research, I realized that Spotify has been pouring more and more money into both third-party licensing deals and original development for podcasts — potentially cannibalizing its own brand as a music service in the process.

Last year, the company signed exclusive podcast distribution deals with Joe Budden and Vice News, plus a landmark non-exclusive deal with the BBC. Original Spotify podcasts that have launched over the past six months alone include Amy Schumer’s comedy series 3 Girls, 1 Keith; the branded show Ebb & Flow, which features hip-hop entrepreneurs and is…