We kick things off with Neil’s thoughts on Spotify’s earnings. The discussion then turns to the WSJ’s deep dive into Spotify’s podcasting strategy. We go over three specific problems with the strategy. The update concludes by bringing Apple Podcasts into the mix and looking at the overall podcasting space.

Hello everyone.

One follow-up to yesterday’s update. In late 2022, Apple announced $450M was being spent on U.S. infrastructure to support Emergency SOS via satellite. A majority of the funding is earmarked for Globalstar. The reimbursements that Apple will provide Globalstar for 95% of capital expenditures related to updating its satellite constellation is part of that $450M commitment.

Spotify 2Q23 Earnings

Back at the end of July, Spotify reported 2Q23 earnings. With 3Q23 nearly two-thirds over, we will keep our focus broad. The more interesting topic is found with Spotify and podcasting, which we will discuss shortly.

Spotify’s earnings were similar to those of the past few quarters. User growth is exploding higher – thanks to a ramp up in marketing and promotions – while the company treads water financially.

The following slide did a good job of summing up Spotify’s current status.

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