Spotify ‘podspell’ uninspiring to Street

Streaming music giant Spotify announced plans to build its audience through podcasting Wednesday — but Wall Street focused instead on missed revenue expectations with shares heading south.

Spotify, which has 96 million paid subscribers, said it is planning to buy podcast companies Gimlet Media and Anchor in a deal that will lead to more original content.

The deal is expected to help Spotify expand its audience and fend off rivals such as Apple Music, which reportedly has more than 50 million users and is growing at a fast clip.

Deal terms were not disclosed, but Spotify nabbed Gimlet, the maker of such popular audio shows as Reply All and StartUp, for about $230 million, according to reports.

In announcing the news, Spotify Chief Executive Daniel Ek said the company plans to spend up to $500 million more on podcast acquisitions in 2019.

Spotify’s revenue grew 30 percent, to $1.7 billion, but fell short of Wall Street’s expectations of $1.71 billion, suggesting that fewer subscribers signed on to the service than anticipated.

The stock fell 4.3 percent in midday trading and closed down 2.8 percent, at $135.45.

For the year, the company reported a loss of $92.1 million, or 60 cents per share. Annual revenue was $6.21 billion.