Spotify invests big in podcasts. Here’s how new studios are paying off

On a recent weekday morning inside a studio in the heart of Hollywood, Rachel Lindsay and Van Lathan, co-hosts of The Ringer’s “Higher Learning,” were getting ready to roll.

By the time the podcasters came into the Spotify Sycamore Studios for their show, which covers all things in Black culture and politics, the overhead lights were set, and the cameras were precisely angled. Decorative books were propped up between their seats and a big red “Higher Learning” logo stood behind them.

As soon as everyone silenced their phones, the hosts began to banter like two old friends. Lindsay complimented Lathan on his recent foray into stand-up comedy at the Netflix is Joke Fest at the Laugh Factory.

“I just have to say … basically a star is born,” said Lindsay, grinning. “I have to talk about it. Now I never doubted you.”

The pair helms one of the many shows on The Ringer podcast network, known for its roster of A-list celebrity hosts and sports and culture commentators that recently moved into Spotify’s newest podcasting studios.

The 11,000 square-foot space on Sycamore Avenue was designed as both a home base for The Ringer’s production and a video podcasting hub for select Spotify creators.

Since its opening earlier this year, the space has welcomed more than 25 podcasters and shows, on top of the dozens of shows that still record at Spotify’s Mateo studios in the Arts District.

The company estimates that over the last five years it has contributed more than $10 billion to the podcasting industry, including payouts to creators and investments in new content.

Podcasts are just one arm of Spotify’s business, as the audio giant has over 100 million songs and 700,000 audiobooks on its platform. But video podcasts have become an increasingly important way for the company to keep listeners tuned in — and paying for subscriptions amid growing competition from Apple Music and YouTube Music. Despite a surge in profits in the first quarter, Spotify’s share price has fallen 25% this year as investors worry about a slowdown in subscriber growth.

Van Lathan and Rachel Lindsay record their podcast, “Higher Learning with Van Lathan and Rachel Lindsay,” at Spotify’s Sycamore Studios in Hollywood on May 7. The podcast is distributed on Spotify through The Ringer.

(Allen J. Schaben/Los Angeles Times)

One of the main drivers behind opening the Sycamore studios was to create a central hub for The Ringer, a media company Spotify acquired for $250 million in 2020.

Geoff Chow, Spotify‘s head of podcast studios and The Ringer’s managing director, said the investment is already paying off “in terms of the productivity and the quality of the content we’re able to produce from here.”

The Ringer is one of the streamer’s most popular assets. Spotify includes nine Ringer shows in its list of the top U.S. podcasts.

“They’re pouring into this space and their creators,” Lathan said, before recording a new “Higher Learning” episode. “We really have the freedom to do so much.”

He and Lindsay said the studio has elevated their show by switching up their workflow and increasing in-person work.

Thanks in part to its centralized location, tucked between the offices of SiriusXM and music and sports entertainment company Roc Nation, they say guests are more eager to visit and record in person. Lathan joked that even while walking down the street, he’ll run into radio personalities like Sway Calloway, who hosts his own successful “Sway in the Morning” show on SiriusXM, and convince them to come up for a tour of the space.

Sycamore has already seen guest appearances from Snoop Dogg on “Game Over with Max Kellerman and Rich Paul,” Pennsylvania Gov. Josh Shapiro on “Higher Learning with Van Lathan and Rachel Lindsay” and “Project Hail Mary” author Andy Weir on “House of R.”

“This street is so cool,” Lindsay added. “It’s just a different energy here.”

The duo first started recording at Spotify’s Arts District campus, which is more focused on audio-driven programs. But as the podcasting landscape evolves and video becomes a more important element, “Higher Learning” is now able to maximize on the new studio’s video-first capabilities.

Chris Thomas, studio operator, works in the control room on the podcast, “Higher Learning with Van Lathan and Rachel Lindsay.”

(Allen J. Schaben/Los Angeles Times)

Spotify also employs a combination of full-time employees and freelancers that staff each show, including sound engineers, lighting specialists and set designers who help keep the place running.

The Ringer, founded by media mogul Bill Simmons, exists online as a website, a podcast network and video production house, anchored in sports, pop culture and politics coverage. Some of its most popular programs include “The Bill Simmons Podcast,” “The Rewatchables” and the inaugural Golden Globe winner “Good Hang with Amy Poehler.”

Many of the hosts overlap within The Ringer’s podcasting ecosystem. Just between Lathan and Lindsay, they host and appear as regular guests on as many as five shows, so they work from the studio three to five times a week. By being in close quarters together, a greater sense of collaboration has enveloped The Ringer’s team. Chow said there are some days when Simmons will walk onto four shows a day, just to share his thoughts on a topic.

“This is my dream of what The Ringer is. We’re all here talking, we’re all existing together,” Lathan said. “We’re all popping in and out of different rooms all the time.”

Exterior view of the building that houses Spotify’s new Sycamore Studios. The company takes up one floor of the facility.

(Allen J. Schaben/Los Angeles Times)

The Ringer was first founded in 2016. At the time, Simmons had recently been ousted from ESPN due to a strained relationship with higher-ups. Simmons had spearheaded the network’s Grantland sports blog, which focused on cultural commentary that is similar to what The Ringer does today. The Ringer soon established itself as one of the fastest-growing independent podcast networks.

The brand still keeps its roots in fandom — whether it’s through football or “Game of Thrones,” said Chow. So, to have a space that reflects the diversity of its programming often makes recording more fruitful, especially during key moments like the NFL draft or awards season.

As The Ringer continues to expand its roots in Hollywood, the network remains focused on maximizing its content.

In January, The Ringer started airing select podcasts on Netflix to reach a wider audience. Chow said the partnership is off to a promising start. Each of the five recording studios at the Sycamore site is fully equipped with live-streaming technology — making the weekly Netflix live shows possible.

“Podcasts have become like a cultural hub and curator of things that are happening in the world,” Chow said. “We always want to innovate and test. That’s something that was exciting to us to think about bringing our audience new content in different places.”