When it comes to the streaming music industry, Spotify is leading the pack. But now, the company’s new activist investor is making sure that the money it puts into podcasting yields positive results.
Spotify recently hired Leonardo DiCaprio’s Appian Way Capital as its new activist investor. This means that Appian Way, headed by DiCaprio, will be watching out for investors’ interests in Spotify’s podcast investments. This is noteworthy because podcasting is a huge part of Spotify’s growth strategy moving forward, but it’s a comparatively expensive venture.
Spotify has already acquired several podcast networks, such as Joe Rogan’s exclusive podcasting deal, Gimlet Media, and Parcast. In addition, Spotify has also invested in numerous original and exclusive audio programs. While these investments are considered “nice to have” rather than “must-have” by investors, they are still a key component of driving engagement and subscriptions.
Spotify has already invested billions in these deals, and now investors want to make sure those investments pay off. Appian Way’s presence will ensure that Spotify is carefully managing the money it spends. This could mean ensuring that the original programming is fresh and up to date, or that the podcasts have an appeal and long-term viability.
While Appian Way’s addition to the Spotify team is a positive development, it’s also important to note that DiCaprio is not going to be a part of the day-to-day oversight of the company’s podcast investments. In fact, Appian Way’s primary focus will be to ensure that Spotify is making prudent investments and that the money spent is yielding tangible results.
Overall, Spotify’s addition of Appian Way is an important step for the growing streaming music industry. Appian Way’s focus on smart investing will ensure that the money put into podcasting is well spent and yields the desired results. For investors and industry watchers alike, Appian Way is an important addition to the Spotify team.