Spotify today announced that it acquired Parcast, a podcast network that specializes in crime, mystery and science fiction shows, for an undisclosed amount. The news follows Spotify's recent acquisitions of Gimlet Media, another renowned podcast network, and Anchor, a podcasting application. In its press release on the purchase, Spotify says the crime and mystery podcasts are "a superior genre for our users," and that's why he felt it was worth buying from Parcast.
Considering this, it makes sense that Spotify wants to invest in a network that already has the necessary experience to create interesting shows. Barry McCarthy, the Chief Financial Officer of Spotify, said that the company follows the same Netflix model in the sense that it will develop "good predictive algorithms", so Spotify knows what people like and can give the green light to production based on those forecasts.
In this case, Spotify did not need a sophisticated algorithm to tell it something; He had listening data to help make his purchase decision. The company has previously referred to its purchase of Gimlet as something similar to the purchase of Pixar or Marvel by Disney: the studios retain their independence, but they live inside and enrich the intellectual property library of their parents. Parcast has not clarified whether it will maintain its equipment or its offices, but Gimlet maintains its headquarters in Brooklyn, New York. Since the announcement of the Gimlet agreement, the creative team of Gimlet announced its plans to unionize, although Gimlet and his legal advisor said that they will not voluntarily recognize the union.
Spotify said it plans to spend up to $ 500 million on deals related to the podcast, so the company will probably have more news later this year.