Technology

It was a good run. But all things must come to an end. Good podcasts, that are free-topod, will soon be a fond memory. This week Spotify bought Gimlet Media, a leading podcast production company, for a reported US$230 million (NZ$340m).

The Swedish audio company also bought Anchor, a platform that lets users create, distribute, host, and monetise podcasts, for an undisclosed fee.

Is this a bad thing? I’m not sure. Possibly not. But there is one thing I am sure of. It means the industry is in for a shakeup.

Why did Spotify buy Gimlet?

On the surface, it may look like a bit of a bad deal – US$230m for a company that gives its assets away for free and relies solely on advertising for revenue.

But it’s not as simple as that. A lot of podcasts don’t make money. Not big money. Not from podcasting anyway.

Which is why a lot of podcasters choose to take their shows on the road and perform live in local theatres to make extra cash.

So why did Spotify pay such a vast sum for Gimlet? Simple – content. And as we all know, content is king.

Gimlet Media is probably best known for its Homecoming podcast starring David Schwimmer and Catherine Keener. It later sold the television rights to Universal, which in-turn sold the show to Amazon Prime.

And that’s just one example of what good content can do.

Podcasting is still in its infancy. It’s an industry that’s a mixture of professional