Netflix, the streaming giant that changed the way we watch movies and TV, is now eyeing the booming video podcast market.
According to Business Insider, the company is exploring how to dive into podcasting, potentially licensing or creating its own talk-based video shows. This move comes at a time when platforms like YouTube and Spotify are already dominating the video podcast space, offering creators new ways to distribute and make money off their content.
For Netflix, podcasts seem like a no-brainer — especially since they’re much cheaper to produce than traditional TV shows and movies. With over 300 million subscribers around the world, Netflix offers creators massive exposure, and in return, the platform could tap into a whole new revenue stream.
In this blog, we’ll be diving into what we know so far about Netflix’s push toward video, what it means for creators, and what video podcasts on Netflix could look like.
Netflix + video podcasts: What we know so far
While Netflix has dabbled with talk-based formats in the past, such as Headspace Guide to Meditation, the streaming giant is now focused on expanding its reach into the video podcast space. This shift is part of a broader push to diversify content offerings and stay relevant in an increasingly competitive market.
Netflix’s shift towards video podcasts is still in its early stages, but here's what we know so far:
- The Alex Cooper talks: Netflix has been in talks with notable podcasters, including Alex Cooper from Call Her Daddy, though Cooper ended up signing with SiriusXM for $125 million.
- Cost-effective content: Podcasts provide a cheaper alternative to traditional TV shows and movies, which can cost hundreds of millions to produce. The lower production costs of podcasts make them an attractive option for Netflix.
- Putting up a fight in the streaming wars: Netflix’s move into video podcasts is in part a response to the growing dominance of video platforms like YouTube and Spotify in the podcasting world and other streaming companies like Amazon Prime, Hulu, and Disney+ proving competitive.
The draw of video podcasts
You may be asking yourself: why the push toward video podcasts anyway?
Let’s take a quick look at the numbers:
- 64% of podcast listeners found YouTube to be a better podcast experience compared to audio-only formats
- 48% of podcast listeners find new podcasts on YouTube
- 84% of Gen Z monthly podcast listeners consume podcasts with a video component
- 49% of Gen Z listeners say that video provides a better understanding of context and tone
- YouTube is the most used podcast platform for consumption at 34%
With these numbers in mind, there’s no denying that video has firmly secured its spot in podcasting.
The biggest player is none other than YouTube Podcasts. With a user base 5x the size of podcast apps, the site has already ranked the top platform for consumption at 34% despite only being on the scene for less than two years. Plus, Spotify is making moves toward video with a 70% increase in video content on the app in the past year alone.
Following in their lead, it’s not surprising that Netflix wants a piece of the crown. Especially considering that video podcasts are a lot cheaper to produce than TV shows and movies (should Netflix look to produce their own podcasts, but more on that later).
What this could mean for video podcasters
Netflix’s decision to enter the video podcasting space is an exciting development for both creators and consumers. As one of the world’s most popular streaming platforms, Netflix's involvement in podcasts could be a pivotal moment for the medium.
Here are some potential impacts:
1. Increased reach for creators
Podcasters often face the uphill battle of discoverability. Netflix's vast subscriber base—over 260 million globally—could change that for good.
With Netflix's robust recommendation algorithm, podcasts could gain the same level of attention that popular TV shows receive. Just as Netflix suggests new series based on viewers’ preferences, podcasts could be promoted alongside binge-worthy content. This presents an entirely new form of exposure for podcast creators, enabling them to tap into a massive audience that may not have considered listening to a podcast otherwise.
We saw this with the rise of YouTube Podcasts. The world’s second-largest search engine, boasting 2.5 Billion active users, is where 65% of people are tuning into a podcast for the first time.
2. More monetization options
While podcast ads, sponsorships, and listener support via platforms like Patreon are common revenue streams, these methods are not known for their stability. With Netflix entering the podcasting space, new and potentially more lucrative monetization models could emerge.
One such model could be licensing deals, where Netflix pays creators upfront for the rights to stream their content. This would give podcasters a predictable revenue stream without having to rely solely on the unpredictable nature of ad-based income. Furthermore, a revenue-sharing model could allow creators to earn from a percentage of Netflix's subscription revenue tied to their content, much like how Netflix pays for original TV shows.
Exclusive content could also become a key feature of Netflix’s approach to podcasts. Just as Netflix has revolutionized TV with its exclusive Originals, the platform could create exclusive podcast content, offering listeners access to high-profile shows that aren’t available anywhere else. This shift would also allow podcasters to build more sustainable businesses, as they would have access to larger-scale financial support from Netflix.
3. The broader streaming ecosystem – all in one place?
The growth of podcasting has been staggering, but it’s often been siloed from other forms of entertainment. By integrating video podcasts into its platform, Netflix would be blending the worlds of TV and podcasting, giving creators an opportunity to capitalize on the broader streaming ecosystem – all in one place.
Just like TV shows, video podcasts can be consumed in a binge-friendly format. With Netflix’s well-known ability to keep users hooked for hours (Are you still watching?), this could translate to longer listening sessions, allowing podcasters to engage audiences more deeply over time.
Additionally, “always on” podcasts (these are podcasts that have a steady, constant release schedule as opposed to launching in seasons) allow for ongoing engagement. Unlike traditional TV shows that release episodes in seasons, podcasts can sustain regular content drops, keeping audiences coming back to Netflix for fresh material, potentially leading to more consistent viewership and increased subscriber loyalty.
What podcasts on Netflix could look like
Given what we know so far, two main scenarios are likely to unfold:
1. Licensing existing podcasts for exclusive distribution
The first way Netflix may make its debut in video podcasting is by licensing popular, pre-existing podcasts for exclusive distribution on the platform. This would mirror the company's approach with other types of content, such as acquiring distribution rights for viral YouTube series like The Amazing Digital Circus. By securing these licensing agreements, Netflix could offer video podcasts that already have an established fanbase, providing immediate access to a wide audience.
For Netflix, this option comes with a lower financial risk since the content is already created and tested in the market. Licensing popular podcasts like Call Her Daddy or The Joe Rogan Experience would allow Netflix to tap into these podcasts' massive, loyal followings.
Furthermore, this model would allow for strategic flexibility with timed exclusivity. Netflix could release the podcast episodes exclusively for a certain period, enticing users to subscribe for early access, and then distribute the content to other platforms like YouTube and Spotify after the exclusivity window ends.
Plus, this strategy aligns with Netflix's current exploration of its ad-supported tier, offering new opportunities for ad inventory. As video podcasts typically have sponsorship and advertising opportunities, these licensed shows could become another valuable revenue stream for the platform, benefiting creators and Netflix alike.
2. Creating original content with big names
A more ambitious and strategic option for Netflix is to create original video podcasts in collaboration with high-profile podcast creators. This approach would allow Netflix to craft exclusive content directly for its audience, tapping into the growing popularity of podcast personalities.
Netflix's interest in figures like Alex Cooper, the host of Call Her Daddy, speaks to their interest in signing podcast stars to create brand-new content for the platform. Though they were outbid by SiriusXM for Cooper last year, this interest signals a potential future where Netflix invests in developing original podcasts hosted by prominent creators.
This scenario would allow Netflix to capitalize on the built-in audience these creators bring while fostering deep exclusivity with the content. Much like how HBO Max developed SmartLess: On the Road with the popular SmartLess podcast, Netflix could create highly produced, visually appealing video podcasts with big names.
These shows could go beyond simple interviews or discussions, incorporating elements like travel, celebrity guests, or behind-the-scenes content. For example, a podcast featuring cast members discussing "Friends" or "Breaking Bad" could drive traffic between the podcast and the original shows, boosting both podcast and TV viewership.
For podcast creators, this partnership could present lucrative deals, including upfront licensing fees, revenue-sharing models, or the chance to have exclusive shows. Additionally, with Netflix's massive subscriber base, creators would gain unprecedented exposure, bringing their podcasts to an entirely new audience.
Would you watch podcasts on Netflix?
YouTube has shown that audiences want video with their podcasts, and Spotify is investing heavily in the format. If Netflix plays this right, it could offer creators a new way to reach audiences at scale while opening up fresh revenue streams.
But there are still a lot of unknowns. Will Netflix fully commit to podcasting, or will this be another short-lived experiment? Will creators see real benefits, or will this just be another walled garden? However it plays out, one thing is clear: video is becoming a core part of podcasting that the big names can’t ignore.
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