Netflix Is Eyeing Video Podcasts for Next Growth Act

• Netflix is exploring licensing video podcasts because it seems to its subsequent section of progress.
• YouTube’s success with video podcasts has proven they don’t seem to be only for listening.
• Podcasts might supply Netflix low cost content material and potential advert income progress.

Netflix has spent the previous twenty years upending the TV enterprise. Might video podcasts be subsequent?

Netflix has been exploring potential offers with podcasters, 4 business insiders aware of Netflix’s technique informed Enterprise Insider. The trouble comes as YouTube’s rise as a living-room fixture and podcasting powerhouse has stoked curiosity from Netflix in creator content material.

Final yr, Netflix appeared into doing a take care of Alex Cooper of “Name Her Daddy” fame, two individuals aware of the talks informed BI. Cooper ended up placing a take care of SiriusXM reportedly value as much as $125 million.

Netflix declined to remark.

A high expertise agent mentioned that in conversations in latest months, Netflix insiders had warmed to the thought of tapping podcasting expertise to host a talk-based video present, after beforehand expressing skepticism that the format might work on the platform.

“Extra lately they’re exploring: Is that this doable? Which one would make sense for us? They ask about particular names,” the agent mentioned. “It is a solution to get an incredible quantity of content material at a fraction of what they pay for scripted and unscripted budgets.” This particular person, together with another business insiders, spoke on the situation of anonymity to guard enterprise relationships; their identities are recognized to BI.

Netflix’s previous forays into talk-style exhibits have typically revolved round comedians and have typically been short-lived. The streamer has not fully deserted that strategy. Final month, Netflix introduced that it had signed John Mulaney to a 12-week-long present “All people’s Reside with John Mulaney.” This follows the six-week “John Mulaney’s All people’s in LA” and different tasks Mulaney has had with the streamer.

The trouble to signal podcasters, nevertheless, is a sign of Netflix’s normal warming to the thought of working with creators, business insiders informed BI. In latest months, Netflix has welcomed YouTube-born creators, together with entertainers The Sidemen and children’ educator Ms. Rachel, to its platform.

Video podcasts might be a pure extension of that effort.

“I might see a world through which audio-only and vodcasts are streamed on Netflix in order that they will supply an all-in-one place to maintain customers on their platform for the whole lot,” mentioned Jessica Cordova Kramer, the cofounder of Lemonada Media, which works with Julia Louis Dreyfuss and Meghan Markle on their podcasts.

Video podcasts can attraction to Netflix and different streamers as a result of they’re cheaper than conventional TV exhibits, their common launch schedules can construct a behavior, and so they will help increase advert income by including further stock.

“We’ve got spoken with a number of streamers seeking to accomplice with us for licensed content material,” Cordova Kramer mentioned.

Podcasts are more and more being watched

Netflix is little question seeing how YouTube has change into the highest platform for podcasts. It beat out Spotify and Apple as of the fourth quarter of 2024, in response to Edison Analysis. Creators like Tana Mongeau and Logan Paul, in flip, are chasing the podcast growth by creating their very own exhibits, serving to broaden their enterprise by touring, merch, and extra.

Many podcasts, particularly these of the discuss selection, additionally now have video elements. Edison discovered that 89% of weekly Gen-Z podcast listeners watched (or listened to) podcasts with video as of the tip of 2024. YouTube mentioned individuals watched 400 million hours of podcasts on televisions in 2024 by way of its platform.

This pattern has drawn the format nearer to the daytime and late-night discuss exhibits which have been on TV for many years, mentioned Vox Media’s SVP and normal supervisor for audio and digital video Ray Chao.

Chao mentioned that TV firms apart from Netflix had already sought out discuss exhibits that started within the digital realm. He pointed to Pat McAfee at ESPN and “Scorching Ones” at Hulu. Chao declined to touch upon Vox Media’s lively enterprise alternatives within the area.

Business insiders say extra streamers getting into the fray might be a boon for the podcast business.

“Podcasting has type of been by rather a lot the final 18 months,” mentioned PAVE Studios founder Max Cutler, citing Apple’s iOS 17 replace, which modified podcast downloads and impacted adverts. “Having somebody like Netflix are available in will actually assist develop the general pie of listenership and viewership.”

What does Netflix need?

Business insiders mentioned they see potential Netflix offers going a number of methods. Netflix might license present podcasts and forego exclusivity, because it did with “The Wonderful Digital Circus,” a well-liked YouTube present that got here to Netflix in October.

Netflix may need to have one thing distinctive, three individuals aware of its efforts mentioned. Within the case of Cooper, Netflix expressed curiosity in creating authentic exhibits across the star, one of many individuals aware of the talks mentioned. A mannequin might be one thing like Max’s “Smartless: On The Highway,” a present based mostly on Jason Bateman, Will Arnett, and Sean Hayes’ standard podcast.

Netflix might even need exhibits all to itself — or at the very least completely for a sure time interval earlier than they’re accessible on YouTube. It might additionally supply subscribers an ad-free model as a bonus over the YouTube model, or search out ancillary content material from hosts past the core podcast property.

Not one of the insiders who spoke with BI thought Netflix was on the verge of difficult YouTube anytime quickly. However some noticed a day when Netflix would possibly supply a creator-led part or free model of its service, which might eat into YouTube’s dominance.

One problem within the quick time period: Netflix will seemingly need to enter the podcast enterprise with the most important creators, and there aren’t many accessible.

Notables like Cooper, the Smartless guys, and Dax Shepard have already been snapped up for eye-popping offers. One potential candidate is Kylie Kelce, spouse of Jason Kelce, who simply handed Joe Rogan as the preferred on Apple and Spotify. Or Netflix would possibly look to those that might construct on its comedy vertical, like Tony Hinchcliffe, who hosted Netflix’s “Netflix is a Joke” comedy pageant.

Nonetheless, business insiders typically mentioned they felt it was solely a matter of time earlier than extra of those offers obtained performed.

“If the primary spherical of big podcast enlargement and acquisitions got here from the Spotifys, the Siriuses, the Amazons of the world, the following spherical might be going to come back from the streamers,” Cutler mentioned.