The opening numbers are displayed on the floor during the Spotify IPO at the Dow Industrial Average at the New York Stock Exchange on April 3, 2018 in New York. / AFP PHOTO / Bryan R. Smith (Photo credit should read BRYAN R. SMITH/AFP/Getty Images)

The music streaming service nowadays confirmed that it’s snapped up 2 podcast networks — Gimlet and Anchor — in covert deals. however that’s not all; the firm aforementioned it’s plans to pay an additional $400-$500 million “on multiple acquisitions in 2019” to urge even deeper into the house.

The Gimlet deal is alleged to be upwards of $200 million, in line with rearrange — that bust news of the deal last week — however it isn’t nonetheless clear what proportion the corporate has spent on Anchor, that helps podcasters record their shows so distribute them on-line.

The deals area unit a serious push for Spotify, however the writing has been on the wall for those being attentivewe have a tendency to according last month from CES that Spotify goes once podcasting this year. the corporatehas been going once exclusive shows — at CES it additional “Unbothered” from journalist Jemele Hill — whereasit’s conjointly engaged on specialist ad units around its podcast network.

We’ve detected Spotify speak a giant game on “the way forward for radio” before, however now around it’s golf stroke cash behind its ambitions. the large strategy, on the far side business to the expansion of podcasts, is to develop a replacement channel for consumption of its core business as Courtney Holt, the pinnacle of Spotify Studios, told U.S. in January.

“People United Nations agency consume podcasts on Spotify area unit overwhelming additional of Spotify — as well as music,” Holt aforementioned. “So we have a tendency to found that in increasing our [podcast] catalog and disbursal longer to create the user expertise higher, it wasn’t eliminating from music, it had been enhancing the general time spent on the platform.”

That conjointly includes a far additional personal and tailored approach to content, that is very importantas long as Spotify offers a catalog of over forty million tracks.

“Think concerning what we’ve done around music,” Brian Benedik, VP and world Head of Advertising Sales at Spotify, told TechCrunch. “The additional understanding you’ve got round the music you stream, the additional we are able to individualize the ad expertisecurrently we are able to take that to podcasts.”