Sweden’s Spotify has agreed to buy Megaphone, a podcast advertising and publishing platform, and the company said on Tuesday that this is the latest deal in a series of upgrades to the podcasting platform.

A Spotify spokesperson said that the transaction was worth US$235 million (approximately 17 billion rupees).

The company said it will use Megaphone’s technology to create targeted advertisements and will also provide third-party podcast publishers with its proprietary ad monitoring tools.

Spotify makes money through paid subscriptions and distributing ads to non-paying users. After being hit by the pandemic at the beginning of this year, Spotify’s advertising business resumed growth in the third quarter.

Executives said that advertising growth will accelerate this quarter.

At a time when many people are homeless due to the coronavirus outbreak, its massive investment in podcasting, Netflix, which aims to become audio content, has helped drive user growth.

Since last year, Spotify has spent hundreds of millions of dollars to acquire companies such as Ringer (a sports and entertainment podcast network) founded by Podcast producer Gimlet Media and sports writer Bill Simmons.

The company said that this new technology will help podcast publishers get more benefits from their work.

Dawn Ostroff, Spotify’s chief content and advertising business officer, said: “We are still in the early chapters of the streaming audio industry story, but definitely have potential.

Spotify now has 1.9 million podcasts, compared with 1.5 million in the second quarter, thanks to the influential Michelle Obama podcast and the influential Addison Rae launch Mama Knows and other large releases.

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