Before focusing on user-generated playlists and automatic suggestions, Spotify established its niche by eschewing albums and personal favorites. The service has expanded while simultaneously becoming more dispersed. Since the corporation is following the same strategy to diversify entirely from music, it’s becoming increasingly difficult to use its one central app. Getting into podcasting was Spotify’s first step in this direction. The business purchased the anchor podcast creation tool and Gimlet (a podcast studio) in 2019. Since then, it has done all in its power to establish the Spotify app as a destination, expanding its podcasting features and gatekeeping an increasing number of Gimlet shows so that they are only available via the Spotify app.
The $4 billion audiobook business has recently caught Spotify’s attention. Along with music and podcasts, audiobooks have become the “third leg” of the company’s business since it purchased the audiobook site Findaway last year. Like Apple Books and other ebook shops, the Spotify app allows you to explore a collection of 300,000 unique titles. However, most audiobook listeners find this an odd place for their next book, similar to the podcast bundle. Spotify’s software advances, such as tailored playlists and cross-device syncing, don’t apply to audiobooks, although all the primary audiobook services have separate apps.
Like any asset, the Spotify app has a limit, and when the company starts eroding the primary use, listening to music playing, it’s a risky game. Unfortunately, although I listen to many podcasts and audiobooks, the additional menu options haven’t enticed me to switch. I’m not alone, as evidenced by the business’s most recent earnings. The main effects include making the Spotify player more challenging to use and eroding whatever positive feelings customers may have for the brand. For the time being, Spotify does not need to compete for customers in the streaming music industry. But as the corporation adds more lines of business, the app becomes a bit clogged, and its grip on the streaming industry becomes slightly less solid.