Benzinga | Jan 11, 2022 04:30PM EST

Spotify Shutting Down In-House Studio, Focusing On Partnered Content: What Investors Should Know

One of the largest music streaming and podcasts services is shutting down an in-house studio as it shifts to focusing on partnered content.

What Happened: Entertainment streaming company Spotify Technology SA (NYSE:SPOT) is shutting down its first podcasting studio, according to The Verge.

A note from the company says the studio, called Spotify Studios and also referred to as Studio 4, will be shut down and the staff of 10 to 15 employees face layoffs.

Some original shows will continue being produced at three additional studios purchased by Spotify that operate under the company's umbrella.

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Why It's Important: The memo from Spotify says shutting down the studio will help the company "move faster and make more significant progress and facilitate more effective collaboration across our organization."

Spotify has spent millions of dollars on high-profile deals with Joe Rogan, Dax Shepard and Alex Cooper, host of the Call Her Daddy podcast.

Spotify's next potential hit podcast coming from outside the company is "The Big Hit Show," a new podcast featuring host Alex Pappademas exploring big moments in pop culture. The show comes to Spotify from Higher Ground Productions, the media company from President Barack Obama and Michelle Obama. The podcast is a part of a multiyear deal between the Obamas and Spotify.

"The Michelle Obama Podcast" from Higher Ground ranks as the most listened to Spotify original podcast to date.

Price Action: SPOT shares closed at $234.97 up 4.65% on Tuesday.

Also See: Holiday Streaming Wars: ViacomCBS, Spotify Impress In December, While Disney And Netflix Downloads Drop

Photo: Courtesy of David Mart?n :: Suki_ :: on Flickr