Spotify announced today that it has acquired Parcast, a podcast network specializing in crime, mystery and science fiction shows. The news follows Spotify's recent acquisitions by Gimlet Media, another respected podcast network, and Anchor, a podcasting app. In his press release on the purchase, Spotify says crime and mystery podcasts are "a top genre for our users," and so Parcast considered it a buy.
Therefore, it makes sense that Spotify wants to invest in a network that already has the know-how to create fascinating shows. Spotify's Chief Financial Officer Barry McCarthy said the company is similarly modeled after Netflix by developing "good, predictive algorithms". Spotify therefore knows what people like and can optimize production based on these forecasts.
In this case, Spotify did not need a sophisticated algorithm to say something. It had tapes to make the purchase decision. The company has previously relied on its purchase of Gimlet as the purchase of Pixar or Marvel from Disney. The studios retain their independence but live within their library on their parent's intellectual property. Parcast has not clarified whether it maintains its team or its offices, but Gimlet retains its headquarters in Brooklyn, New York. Since the announcement of the Gimlet deal, the Gimlet creative team has announced its plans to unite the union, although Gimlet and his legal advisor said they would not recognize the union voluntarily.
Spotify plans to spend up to $ 500 million on podcast transactions, so the company is likely to have more news this year.