Spotify’s podcast ambitions continue to expand by acquiring Podz, a smaller company that specializes in machine learning-powered podcast discovery. The company announced the acquisition on Friday, noting that the Podz team will be integrated into Spotify’s core development team, with visible changes to the app by the end of the year. Android Central contacted Spotify to get clarification on the exact purchase price, Spotify did not respond in time for publication.
Podz creates high-quality clips and previews that allow users to sample podcasts without the need for a beginner’s time commitment. In short, you get a highlight reel of the podcast to help you decide whether you like it or not. Spotify wants to use this technology to increase interest in its podcasts, all 2.6 million of them.
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talking to techcrunchLatif Peracha, M13 General Partner and Podz Investor said:
Already, the average podcast listener subscribes to seven podcasts, but follows about 30 on Podz. Early signs leave us optimistic that the team can create a transformative product in the category.
Spotify has been slowly building up its cachet as a podcast service over the past two years. In addition to launching itself as a podcast aggregator, the company recently started curating its own slate of original podcasts. It may seem like a departure from its original goal, but competitors like Apple and Google have joined forces to see music and podcasts intertwined. The acquisition of Podz could help Spotify retain more customers on the podcasting side of things. If it is successful, it will be able to attract more creators building exclusives for its platform.
In addition to the purchase of Podz, Spotify recently got into an audio chat phenomenon with its new Clubhouse-competitor, Greenroom. This update is being rolled out to the customers immediately.