Spotify Algorithm: Spotify’s algorithm is costing it $38 million a year

Podcasts are usually two or more people talking things over, and Spotify has spent over a billion dollars in the last year and two, bringing in all the big names it could, introducing new shows, and even video podcasts. However, it is also spending a lot of money on podcasts that do not actually involve any talking, rather known as white noise podcasts.
These white noise podcasts, where no one talks, are costing Spotify $38 million a year, reports Bloomberg. Spotify could make that money back if it gets users away from these no-talk podcasts, but who is to blame? Well, it is Spotify itself. Spotify’s algorithm has been centring these types of podcasts to listeners as it pushes ‘talk’ content versus music.
White noise podcasts, which are basically the sounds of waves, fans, and vacuums, have become increasingly popular and lucrative on Spotify. These have been accounting for around 3 million listening hours each day, with creators making almost $18,000 per month.
Spotify is undoubtedly not happy about it. While listeners seem to like them, and creators are making quite a handful of money, it is eating a considerable chunk out of Spotify’s revenue. The company considered removing white noise podcasts from its talk feeds and nudging users towards other content, which could have given a significant boost but decided not to go through with the move. “The proposal in question did not come to fruition — we continue to have white noise podcasts on our platform,” a Spotify spokesperson told Bloomberg.
While the white noise podcasts continue to be available on Spotify, there seems to be something going on behind the scenes. Some podcasters told Bloomberg that they have had episodes disappear from the platform. Listeners have also

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