Spotify has acquired podcast start-ups Gimlet and Anchor and said it plans to spend $500m (£385m) on further acquisitions this year.
The move put its up against Apple, the most popular distributor of podcasts. Apple Music is the second-most-popular paid music service, after Spotify.
The company did not disclose figures for the purchases, but the acquisition of Gimlet is expected to top $200m, making it Spotify’s largest acquisition to date.
Founder Daniel Ek said the fast-growing podcasting market was a key area of expansion for the firm.
“We believe it is a safe assumption that, over time, more than 20pc of all Spotify listening will be non-music content,” he said in a blog post. “This means the potential to grow much faster with more original programming.
“Our core business is performing very well. But as we expand deeper into audio, especially with original content, we will scale our entire business.”
Gimlet is behind sever popular podcasts including Homecoming, while Anchor is largely used as a platform to create and monetise podcasts.
Spotify announced the deals on the same day it reported its first profit ever of €94m, as well as subscriber growth.
The company added 16 million new users in the fourth quarter of 2018, 9 million of whom pay for its premium services.