Spotify Announces Strategic Acquisition of Podcast Technology Leader, Megaphone
November 10 2020 - 9:00AM
Business Wire
Spotify Technology S.A. (NYSE:SPOT), the world’s most popular
audio streaming subscription service, today announced that the
company has entered into a definitive agreement to acquire
Megaphone, one of the world’s most innovative podcast advertising
and publishing platforms. Together, Spotify and Megaphone will help
advertisers and podcast publishers realize the full potential of
podcasts. The two companies will achieve this through the power of
the Megaphone Targeted Marketplace and by making Streaming Ad
Insertion available to third-party podcast publishers for the first
time.
With this acquisition, Spotify continues to deliver against its
goal to become the world’s leading audio platform and focus on
growing audio monetization across the industry. The acquisition
follows Spotify’s launch of Streaming Ad Insertion, an innovative
podcast ad technology that delivers the intimacy and quality of
traditional podcast ads with the precision and transparency of
modern day digital marketing.
Advertisers will now be able to activate across Spotify’s
Original & Exclusive podcasts while scaling reach through the
Megaphone Targeted Marketplace. For podcast publishers, the
acquisition will unlock innovative tools that will help them earn
more from their work. This includes the opportunity to opt-in to
have their content monetized, matching their listeners with even
greater demand from advertisers. Following transaction close,
Spotify will soon make Streaming Ad Insertion available to all
podcast publishers on Megaphone, the first time this technology
will be made available to third-parties. With Streaming Ad
Insertion, podcast publishers will be able to offer more valuable
podcast audiences to advertisers based on confirmed ad
impressions.
“We are still in the early chapters of the streaming audio
industry story, but it is absolutely clear that the potential is
significant,” said Dawn Ostroff, Chief Content & Advertising
Business Officer, Spotify. “We look forward to Megaphone joining
Spotify on our mission to accelerate smarter podcast monetization
for advertisers and podcast publishers powered by a scaled audience
and state-of-the-art technology.”
“We are incredibly excited to join Spotify to help advance the
podcast medium for publishers and advertisers alike,” said Brendan
Monaghan, CEO, Megaphone. “We believe that Megaphone and Spotify’s
shared value in innovation will drive the podcast ecosystem forward
around the world.”
The closing of the transaction is subject to customary
regulatory approvals.
About Spotify Technology S.A.
Spotify transformed music listening forever when it launched in
2008. Discover, manage and share over 60 million tracks, including
more than 1.9 million podcast titles, for free, or upgrade to
Spotify Premium to access exclusive features for music including
improved sound quality and an on-demand, offline, and ad-free
listening experience.
Today, Spotify is the world’s most popular audio streaming
subscription service with 320m users, including 144m subscribers,
across 92 markets.
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About Megaphone
Megaphone is a podcast technology company that provides hosting
and ad-insertion capabilities for publishers and targeted ad sales
for brand partners. The Megaphone platform connects
enterprise-level podcasters and media companies with best-in-class
tools to publish, monetize, and measure their audio content.
Megaphone Targeted Marketplace (MTM) revolutionizes podcast
advertising by offering brands unprecedented listener reach, true
measurement, efficient execution, and guaranteed brand safety.
Megaphone Creative Solutions (MCS) provides end-to-end creative
services for advertisers, developing breakthrough audio ads that
envelop the user and drive results.
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Press Contact: Spotify
Communications press@spotify.com
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