https://whimsical.com/4xDQyo1wuqPGykd99VVrNm@2Ux7TurymPmkmhtf7uwg
Spotify faced huge loses last year and are expected see the same this year. To recover they are trying two strategies:
The first has the risk of record labels pulling their content off if they feel threatened by Spotify. Which would be devastating for them as 87% of all streams are of music distributed by major record labels.
Unlike songs, podcasts have ads transcoded in the audio files which cannot be bypassed by the users. Therefore, boosting their podcasts service is their best bet. To stand out from its competitors Spotify needs to transform its recommendation algorithm to adapt to podcasts. This is really challenging as podcasts are very different from music and the lack of of user data. Spotify recommendation system works so well for music because they have large data sets of user generated playlists to compare and find similarities for collaborative filtering.