This Early AI Adopter Built a Profit Machine
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| By Michael A. Robinson |
The streaming wars just got a lot more interesting — and profitable.
Netflix (NFLX) — the undisputed king of video entertainment — just went all-in on podcasts.
A blockbuster deal with iHeartMedia is bringing more than 15 exclusive video podcasts to the platform.
Shows like The Breakfast Club, My Favorite Murder and Dear Chelsea — gone from YouTube, exclusive to Netflix.
That's not a toe in the water. That's a cannonball.
It comes on the heels of news that a record 58% of Americans — roughly 167 million people — listened to a podcast last month. All-time high.
The tipping point has arrived.
While these giants fight it out, one company sits at the center of all of it.
Not only that, but it’s one of the savviest AI operations in the world today — having been at it for more than a decade before the tech ever went mainstream.
It just reported earnings growth of a stunning 180%.
Let me show you why there is still so much upside ahead …
Art & Commerce Converge
If you have any doubts about the crucial role podcasts play in America today, just consider this.
At this year's Golden Globes, something happened that would have been unthinkable just a few years ago.
For the first time in the ceremony's storied history, Hollywood's most glamorous night introduced a Best Podcast category.
Amy Poehler took home the inaugural award for Good Hang, beating out some of the biggest names in the business — Alex Cooper, Dax Shepard, Jason Bateman and Sean Hayes.
Think about that for a moment. An art form that was just really gaining traction 10 years ago just earned a permanent seat at one of Hollywood's most prestigious tables.
That's culture talking.
Now here's business answering back.
The 55-plus demographic — traditionally the last to adopt new media — just jumped from 52% to 70% monthly podcast listening in a single year.
That's not gradual adoption. That's a stampede.
And Netflix didn't miss it.
Before inking the iHeartMedia deal, Netflix went to one company first …
The same company that controls more podcast listening than anyone else on the planet …
The same company that one of the world's largest entertainment platforms chose as its first and most important podcast partner.
Culture and business colliding head on.
That's the kind of convergence that creates a virtuous investing cycle.
Now let me tell you about the company at the center of all of it.
The Podcast King
Turns out one company was way out in front and has a commanding lead.
That company is Spotify (SPOT).
Spotify dominates global podcast listening with a 38% market share compared to Apple's 31%.
It now hosts more than seven million shows across 180 markets.
When Spotify first entered podcasting in 2019, it had just 200,000 titles.
Today it has seven million.
That's not growth — that's a takeover.
And the company backed that up with serious money.
Spotify has invested more than $10 billion into its podcast ecosystem over the past five years.
In the first quarter of 2025 alone, it paid out more than $100 million directly to podcast creators.
The advertising community has taken notice.
Global podcast ad revenue is expected to exceed $4.2 billion in 2025 — a 17% jump from the year before.
It's also the company Netflix came to first.
Before inking the iHeartMedia deal, Netflix chose Spotify as its premier podcast partner — bringing exclusive content from Spotify Studios and The Ringer to its platform.
Podcasting isn't a side hustle for Spotify. It's a core part of its business and a moat other firms can only dream about.
The Hidden AI Giant
Of course there's more going on here than a commanding podcast presence.
Turns out Spotify also dominates music streaming — and it isn't close.
With more than 751 million monthly active users and 290 million paying subscribers, Spotify has nearly twice the users of its nearest competitor.
The company paid out more than $11 billion to the music industry in 2025 alone — the largest annual payment from any retailer in history.
And here's the reason why.
On the surface, Spotify looks like just a streaming service. In reality, it’s one of the most sophisticated AI engines ever built — wrapped inside a music player.
While the rest of the world was just waking up to artificial intelligence after ChatGPT burst onto the scene in November 2022, Spotify had already been living it for nearly a decade.
It started in 2013, when Spotify acquired Tunigo to power smarter music recommendations.
The following year it acquired Echo Nest — a music intelligence company that became the backbone of everything Spotify does today.
By 2015 the company launched Discover Weekly — a fully personalized AI playlist delivered to every single user every Monday. Revolutionary.
And most people had no idea there was a machine behind it.
That kind of head start is nearly impossible to replicate.
In other words, Spotify offers investors a powerful one-two punch.
First, we have its status as a massive podcast leader.
Combine that with its status as the top music streamer in the world today, driven by AI.
Add it all up and you can see why this is one of the best AI operators in the world today.
It’s clearly showing up in the financials. In the most recent quarter, it grew profits by 180%.
At just a fraction of that growth, we’d see earnings double in just two years.
And where earnings go, stock prices follow.
Now you know why I’m always on the hunt for savvy AI operators like Spotify. Because they offer steady profits over the long haul.
Best,
Michael A. Robinson
P.S. Spotify is part of the $7 trillion race for the world’s critical new resource: Computium. Check out how — and what other companies are in the top spot — here.
