Spotify takes a big jump into the podcasting game

NEW YORK — Spotify is making a bigger bet on podcasts as it looks to bring a Netflix-like model of original programs to the audio world. The music-streaming pioneer gobbled up two podcasting companies, Gimlet and Anchor, on Wednesday.

Although streaming is becoming an increasingly popular way to listen to music, Spotify and other services such as Pandora have struggled to make money because of the royalties and other fees that they have to pay recording labels, songwriters and performers.

The acquisitions are about “expanding our mission from just being about music to being about all of audio and being the world’s leading audio platform,” CEO Daniel Ek said in an interview on CNBC on Wednesday. The company didn’t disclose terms of its podcasting deal.

Spotify, which is based in Stockholm and went public in April 2018, charges $10 a month for its “premium” ad-free music service. It also offers a free ad-supported service.

Spotify has been able to stay a step ahead of Apple in terms of subscribers. It counted 96 million subscribers in the fourth quarter, up 36 percent from a year ago. Apple’s music-streaming service has more than 50 million subscribers, according to CEO Tim Cook.

An estimated 73 million people tune in to some form of podcast on a monthly basis, according to Edison Research. They’re particularly popular with the coveted “millennial” demographic.