a16z Podcast Market Overview

Spotify's Audio-First strategy as articulated by Daniel Ek, Feb. 2019 For the Record What's New THE PATH AHEAD Audio-First FEBRUARY 6, 2019 Culture and Trends Media Kit Company Info Behind the Mic Source: Spotify (https://newsroom.spotify.com/2019-02-06/audio-first/) © 2019 - Andreessen Horowitz Press Inquiries BY DANIEL EK Daniel is the Founder and CEO of Spotify, where he sets the company's overall vision. He was born and raised in Stockholm, where he founded Spotify in 2006. More than 10 years ago we founded Spotify to give consumers something they couldn't get - music any time, anywhere, and at the right price. Along the way, we broke the grip piracy had on our industry and restored the growth of global music through paid on-demand streaming. I'm proud of what we've accomplished, but what I didn't know when we launched to consumers in 2008 was that audio- not just music - would be the future of Spotify. ((( Podcasts lead to higher engagement & expands Spotify's user base: "Our podcast users spend almost twice the time on the platform, and spend even more time listening to music. We have also seen that by having unique programming, people who previously thought Spotify was not right for them will give it a try." Emphasis on original programming: "We believe it is a safe assumption that, over time, more than 20% of all Spotify listening will be non-music content. This means the potential to grow much faster with more original programming. - and to differentiate Spotify by playing to what makes us unique - all with the goal of becoming the world's number one audio platform." Better personalization and discovery: "Our work in podcasting will focus intensively on the curation and customization that users have come to expect from Spotify. We will offer better discovery, data, and monetization to creators" Monetization to creators: "we will scale our entire business, creating leverage in the model through subscriptions and ads" Unique levers of subscription & ad models, expertise in audio, and being a producer of podcasts & platform for creators: "Gimlet and Anchor will position us to become the leading platform for podcast creators around the world and the leading producer of podcasts." "No other audio company has the two-sided marketplace that we have built at Spotify - a marketplace that benefits artists and creators along with consumers. Nobody else has both audio advertising and subscription revenue model at scale globally. Nobody else in music has the engineering capabilities and the expertise in audio that we have at Spotify. And with the addition of Gimlet and Anchor, Spotify will now become the leading global podcast publisher with more shows than any other company." 20

View entire presentation