Former Podcast Boss Criticizes Spotify’s Costly Celebrity Deals

Spotify's Layoffs and Podcast Cancellations

Spotify recently made headlines with its announcement of laying off 17% of its staff and canceling two popular podcasts, Heavyweight and Stolen. This decision has drawn criticism from Lydia Polgreen, the former managing director of Gimlet Media, Spotify's podcast studio.

Money Wasted on Celeb Podcasting Deals

Lydia Polgreen, a prominent New York Times columnist, expressed her disapproval of Spotify's decision to cancel the hit podcasts. In a now-deleted Threads post, she stated, "If you can't make a go of it with these incredible shows, you are simply bad at podcasting." Polgreen further criticized Spotify for wasting money on celebrity deals, such as those with the Sussexes and other high-profile figures, without delivering substantial content.

Spotify's podcast studio Gimlet Media, where Polgreen previously worked, had high hopes for the canceled shows. However, the company failed to ensure their sustainability despite having abundant resources at its disposal.

Spotify's Response and Layoffs

Spotify has not provided any immediate response to Polgreen's comments. Moreover, the company's decision to lay off 1,500 workers, approximately 17% of its staff, has raised eyebrows within the industry. CEO Daniel Ek justified the layoffs by citing the economic slowdown and the rising cost of capital.

These layoffs come after Spotify had already reduced about 200 positions in its podcasting division back in June. Despite these cost-cutting measures, Spotify has spent over $1 billion on podcasting initiatives, including collaboration deals with prominent names like Kim Kardashian, Emma Chamberlain, and the Obamas.

It remains to be seen how Spotify will navigate the challenges it faces in the podcasting industry and whether it will learn from its past mistakes in order to deliver successful and sustainable shows in the future.

Original Article: Business Insider

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By: sjackson@insider.com (Sarah Jackson)
Title: Former Podcast Boss Criticizes Spotify’s Costly Celebrity Deals
Sourced From: www.businessinsider.com/former-gimlet-boss-says-spotify-lit-money-fire-celebrity-podcasts-2023-12
Published Date: Tue, 05 Dec 2023 22:12:44 +0000