Spotify is reportedly losing $38 million a year because of its white noise problem.
The company’s algorithm is unwittingly pushing these podcasts in front of users, who are then listening to them for hours on end. This is costing Spotify a lot of money, as it has to pay podcasters for each hour that their content is listened to.
There are a few reasons why Spotify’s algorithm is pushing white noise podcasts. First, the algorithm is designed to favor “talk” content over music. This is because Spotify pays more to podcasters than it does to musicians. Second, white noise podcasts are often very long, which means that users can listen to them for hours without having to switch to a different podcast. Third, white noise podcasts are often very popular, which means that they are often ranked high in Spotify’s search results and recommendations.
Spotify is aware of the problem, but it has not yet found a solution. One possible solution would be to change the algorithm so that it no longer favors “talk” content over music. Another solution would be to create a separate category for white-noise podcasts so that users who are not interested in them can easily avoid them.
However, it is also possible that Spotify is not actually losing money on white noise podcasts. It is possible that the company is making more money from the ads that play during these podcasts than it is paying to the podcasters. If this is the case, then Spotify may not be motivated to change its algorithm.
Only time will tell how Spotify will address its white noise problem. However, one thing is for sure: the company is losing money on these podcasts, and it needs to find a solution sooner rather than later.
Bijay Pokharel
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