White Noise Costing Spotify Millions: Report

White-noise might be costing Spotify up to $38 million. The Spotify algorithm has unintentionally guided its users towards less profitable white-noise podcasts. The overarching white-noise podcast encompasses soundscapes like ocean waves, calming bird sounds, or radio static. The primary objective of these sounds is to provide a backdrop for those listening. According to a report from Bloomberg, some white-noise podcast creators are raking in as much as $18,000 monthly, thanks to advertisements. Quite a lucrative endeavor. These podcasts have become increasingly popular, clocking in a whopping 3,000,000 hours of playtime on Spotify daily.

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Interestingly, Spotify had considered removing these white-noise podcasts from their platform. They felt this move may be the right decision due to the popularity of the podcasts, believing that by doing so, they could lead users towards more cost-effective content. This change could have boosted Spotify’s yearly gross profit by $38 million. It seemed like the next logical step; however, this idea never came to pass. Recently on Reddit, users have been noticing that some of these white-noise podcasts are quietly disappearing from Spotify. It’s unclear why this is happening, but it’s clear that the world of audio consumption (Specifically passive audio) is constantly evolving.

As the audio streaming landscape continues to transform, the significance of these soundscapes in shaping user preferences and platforms’ financials remains an industry trend to watch. Streaming media play a crucial role in today’s digital age by providing a means to access vast content. Plenty of arguments support the positive impact that streaming platforms have had on the general public’s audio consumption. However, balancing access with censorship is complex and requires a careful hand. It will be crucial to monitor Spotify’s decisions and other leading streaming services to see how they will impact the industry in the future.

Image credits: sgcdesignco on Unsplash

Research for this article was collected from Bloomberg and Reddit.