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Spotify stock plunged over 2% on a report that Apple is spending money to create its own original podcasts.
Spotify has invested heavily in original podcasts. CEO Daniel Ek said it planned to spend $400 million to $500 million on original podcasts this year, including purchases of Gimlet Media and Anchor, two podcast startups.
Gimlet Media produced a variety of original fiction and non-fiction podcasts, including “Reply All,” “Startup” and “Homecoming.” Spotify bought it for $230 million, according to Neiman Lab.
Apple’s Podcasts app is installed on iPhones by default and is the most used podcast app by far according to most estimates. However, Apple doesn’t host or bankroll podcasts. Instead, it hosts a directory of links that enables users to download podcasts from other servers.
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