Spotify shows how the live audio boom has gone bust

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Lots of news at the beginning of the week. Let’s get started: Spotify Live got the axe, Mr. and Mrs. Obama signed another podcast deal, and iHeart signed his podcast on Best Wellness.

Spotify Live shuts down, live audio remains sparse

As the latest sign that live audio is steadily and truly disappearing, Music Ally reports that Spotify is closing the Spotify Live app. For apps that still have a small number of chat rooms in progress, users will receive a notice that the service will end at the end of the month.

“After a period of experimentation and learning about how Spotify users interact with live audio, we have made the decision to terminate the Spotify Live app,” Spotify spokesman Gail Gaviola Morrow said in a statement. was hot podShe added that she will continue to explore live streams in scenarios where it makes sense, such as artist-focused “listening parties.”

The post-pandemic wasn’t for live audio, which flourished with the arrival of Clubhouse in spring 2020. Clubhouse peaked in his mid-2021, when pandemic lockdowns and restrictions still prevented normal socializing, and earned him a whopping $4 billion valuation. Since then, Clubhouse’s monthly active users have dropped by 82%, according to data provided by Sensor Tower.

Clubhouse still limps, but companies that have followed in its footsteps have largely abandoned the pursuit. Last year, Facebook integrated live audio rooms into its overall live chat feature. Last month, Reddit announced the closure of Reddit Talk. Spotify, which built its live product with its acquisition of Betty Labs for his $60 million-plus in 2021, has undergone multiple rebranding of the product and brought in big-name podcast hosts to let the app shine. But according to Sensor Tower, he only had 670,000 app downloads (for comparison, Clubhouse had 35 million downloads in his 2021 alone). Spotify began deprioritizing shows late last year, and given Spotify’s layoffs and belt tightening, it seemed inevitable that the app would get lost.

Aside from Clubhouse, the only ones left in the live audio ecosystem are Twitter and Amazon’s Amp. Twitter Spaces has been the most successful of the live products, but it’s been in a fragile state. As a platform, Twitter was best suited for topical conversations. The road to building the space into a comprehensive audio product with playlists that combined podcasts and chat rooms was well underway. Elon Musk then took over, the podcast was scrapped, and most of the Spaces team was fired. That may never go away, but while the company is trying to save its reputation, Spaces is clearly not a priority.

Amp could be more interesting despite the layoff. There are chat shows, but billed as a “live radio” app that allows aspiring DJs to curate their own music stations and take advantage of the kind of social features born out of the live audio boom. As Spotify points out about “listening parties,” Social His audio can have some effect, especially when it comes to music, beyond just hearing people talk. If not, Amazon is fine either way.

No matter how you look at it, it’s hard to argue that live audio is still vibrant. When Spotify, an audio-only company, can’t see a way forward, it may be time to call live audio a (very costly) fad.

Advertisement and distribution of The Obamas’ Higher Ground Inc. deal with Acast

After reportedly becoming frustrated with Spotify’s exclusive podcast model, the Obamas are moving toward broader distribution of their audio projects. The former first couple signed a multi-year first-look deal with Amazon’s Audible after their deal with Spotify expired last year. And now, thanks to Audible’s shorter exclusivity, Higher Ground has signed another deal with Acast, who will distribute the podcast to other platforms.

The new arrangement allows advertisers to purchase spots through shows such as Acast on Higher Ground. Renegades: Born in Americathe Boomer Fever Dream Pod featuring a conversation between the former president and Bruce Springsteen, The Some of Usan audio documentary series hosted by author and policy expert Heather McGhee big hit show with Alex Papademas.

Acast will also be responsible for the advertising and distribution of Higher Ground’s current and future projects originally produced for Audible. Last month, Higher Ground launched his first Audible podcast. Michelle Obama: The Light Podcast, episodes on the platform have a two-week exclusivity period. After that period, the episodes will be distributed by his Acast to platforms like Apple and Spotify.

The Obamas seem to have achieved a happy medium between reach and the kind of big podcast money that only an exclusive license would bring. The company has already signed a number of high profile shows including: WTF with Marc Maron and Anna Faris disqualifiedand higher ground deals only add to the cash within the industry.

iHeart sign On purpose with Jay Shetty

See, the deal is still happening!megahit wellness podcast On purpose with Jay Shetty I signed up with the iHeartPodcast Network. Shetty, author, life coach, and chief purpose officer for Calm Apps, launched the show in 2019. Podcasts and Spotify.

Unlike some other audio giants, iHeart doesn’t play the game of exclusivity. Conal Byrne, CEO of his audio group at iHeartMedia Digital, said when he appeared at his Hot Pod Summit in February, he wanted to distribute the show as widely as possible rather than trying to get people into his iHeart app. I explained that I could get more out of it. He makes up just 3% of all podcast viewing, according to Cumulus and Signal Hill Insights research.)

Shetty is already comfortably positioned among the top podcasts, but it’s appealing that iHeart also has a large broadcast network that can be used to plug in his show and bring in more listeners. maybe. “There are about 70 or so shows on the iHeart Podcast Network, with over a million downloads each month,” Byrne says on his HPS. “The only reason we have that number is because of the marketing of radio broadcasts.”

That’s all for today! see you next week.