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Spotify considered removing 'white noise' podcasts to save money

2023-08-18 20:21 by


According to internal documents reviewed by Bloomberg on August 17, the audio streaming giant recently considered pulling the plug on some of its most popular white noise and ambient noise podcasts in a bid to boost annual gross profits by $38 million. While that might seem counterintuitive at first glance, the reasoning resides within Spotify’s algorithmic foundations.

The likes of the sounds of waves, vacuum cleaners, and spinning fans, among other white noise podcast content, are said to make up 3 million of the platform’s daily consumption hours, according to a document seen by Bloomberg.

The problem is that white noise isn't very profitable. Spotify makes the most money by pushing customers to its paid music subscriptions, an important revenue stream for a company that relies on razor-thin margins.

The company reportedly considered removing those white noise podcasts and preventing future uploads in the category. Plus, it thought of altering its algorithm to recommend "comparable programming" that's more economical for Spotify. The news organization didn't say if Spotify elaborated on what it meant by "comparable programming" in the internal document, but they could be other types of content meant to induce and improve sleep, as well as to help calm anxiety, which is what white noise is typically used for.

Read more -here-


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