Podcast industry: Amazon fundamentally restructures Wondery

Video killed the radio star. The oft-played song from 1979, which described the transition from radio hit to music video, can apparently be increasingly applied to the podcast industry. The break-up of the US podcast studio Wondery is currently causing a stir, as it was seen by many as an example of how to earn money with audio content online.

Amazon is fundamentally restructuring the podcast studio it acquired in 2021, laying off around 110 employees in the process. According to media reports, the award-winning narrative podcasts such as “Business Wars” will be moved to Amazon's audio platform, Audible. Creator-led shows will end up in a new division focusing on celebrity-driven video formats. Wondery CEO Jen Sargent leaves the company after a transition period.

Revenue quadrupled

Now it is by no means the case that the podcasts were in the red. Since the takeover, Wondery has quadrupled its revenue, reports the US financial news agency Bloomberg. However, the industry is saying that there is significantly more money to be made with video content and that the growth opportunities are brighter. The “gold rush” in podcasts, which was heralded by the true crime podcast “Serial,” is over.

At least for those in the podcast industry who are big and want to become even bigger, this means that they need to be able to do video, say industry observers. Video podcasts are easier for advertisers to market as they are already used to video ads on various platforms. Traditional audio advertising, on the other hand, is difficult to sell.

Shift to subscription models

According to experts, the field of audio journalism is likely to be left more to smaller providers in the future—at least in the US. In Germany, public media play a major role in the podcast world and are launching more and more formats. The developments in the market are therefore likely to be noticed first by fans of English-language podcasts. Eventually, however, they could also spill over across the Atlantic, as the gold rush mood at the time also had a contagious effect on local media companies.

Amazon relies on subscription models instead of advertising financing for its integration into Audible. Other providers, such as Sony, are taking a similar approach. Popular formats will not disappear as a result. But listeners will have to pay for them in the future.

(mki)