Inside Podcasting’s Profitability Dilemma
Among listeners, podcasts are more popular than ever. But from a business standpoint, the industry has lost its way.
The golden age of podcasting spanned from 2015 to 2022. During this time, shows like Serial popularized the medium, and the COVID-19 pandemic led to a boom in podcast production and engagement. Media companies began putting a lot of money into the medium. For example:
- Spotify invested over $1 billion into podcasting, acquiring Anchor and Gimlet, and inking multimillion-dollar partnerships with public figures including the Obamas, Joe Rogan, and Meghan Markle.
- Amazon purchased Wondery, incorporating content from the podcast network into the Amazon Music platform.
Though 60% of adults in the U.S. identify as podcast listeners, the industry hasn’t demonstrated the same growth trend for profitability. Over the past year, we’ve seen investments in the podcast industry scale back. Markers of this include: