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They could have done both.

From a dev perspective, it seems close to trivial to "enable podcasts" in the current app. I think most of the work there was just on organization UIs.

A separate app could be a great marketing tool for people looking for a good podcast app alternative (assuming Spotify was serious about investing in a solid app from what die-hard podcast listeners like to see in it), and monetize with ads unless they become a paying Spotify user (then the music gets enabled too).



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