SME#28 - From Ears to Eyes: Harnessing the Synergy of Podcasting and Streaming Video
Streaming Made Easy #28
Welcome back to Streaming Made Easy. I’m Marion & this is your weekly European take on the Global Streaming Video Business.
Every Friday, you get 1 analysis, 1 streamer snapshot & 1 content recommendation.
Check out SME’s previous editions.
This week, we take a look at the world of Podcasting and how it fits in the Streaming Video landscape.
Credit: Neil Godding - Unsplash
Today at a glance:
Analysis: A look at the world of Podcasting
Streamer snapshot: Podcasting enters the FAST space
Content recommendation: The “Smartless” podcast I’ve ever listened to
💡Analysis:
In the galaxy of streaming, I’ve been meaning to write about Podcasting for months.
Why write about Podcasting?
N°1 - I’m a big podcast listener.
N°2 - It plays a part in, what I prefer to call, the Attention wars.
N°3 - TV Series tap into Podcasts’ hits to produce originals.
N°4 - Podcasts could be a great addition to a streaming video service value prop.
To get us started, here are a couple of key metrics about Podcasting:
→ There are 464.7 million podcast listeners globally as of 2023. This number is predicted to reach 504.9 million by 2024.
→ The podcast industry market size is $23.56 billion.
→ There are over 5 million podcasts globally with over 70 million episodes between them.
→ Spotify and Apple podcasts are the two biggest podcast streaming services on the globe. Youtube US is now the streaming platform for listening to podcasts for consumers aged 13+ (78% of them have used it).
→ The United States has the most podcast listeners in the world. It is predicted that over 100 million active podcast listeners will be in the U.S. in 2023.
→ Scandinavian countries have the highest podcast penetration rate.
Where does Podcasting fit in the wider media landscape?
Podcasting tends to sit in the audio bucket meaning that we look at how it compares to other audio segments (music, radio, audiobooks).
Except that like any other media consumption, the time spent listening to podcasts is time not spent on other mediums.
What are the key metrics in a market like the US?
Look at the most represented age groups in Podcast consumption. Aren’t they THE age groups advertisers are so fond of?
Why do we listen to podcasts?
According to iHeart State of Podcasting 2023, For Gen Z, it’s about companionship. For Millennials, it’s about being productive. I’m both a Gen Z and a millennial then 😁
What’s the underlying business model?
I love this sector but I admit I don’t understand the economics of it.
It started as a free offering. You had podcasts on Apple and limited in program advertising. Today, you see more ads, sponsorships. Some outlets are going premium like Wondery (part of Amazon) but it feels like a struggle. Personally, I don’t want to pay an extra 4€ for podcasts. I expect it to be bundled with my music subscription.
Spotify understood that early on and quickly became a leading podcast venue.
However, Spotify went big (5M podcasts), exclusive (where it could) and spent $1 billion.
Going big → discoverability issues → limited success on a podcast per podcast basis
Going exclusive → reach and revenue are hindered → glass ceiling success
Spending $$ → to what effect? Did they acquire new subs, retain existing subs? Did they generate audio ad revenues?
It’s time to streamline at Spotify especially as social video platforms like Youtube make moves in the audio market.
Speaking about video, how podcasts make their way into the streaming video business?
Podcasts make great materials for TV Series. Actually, some of my favourite shows of the past 18 months are based on podcasts:
We’re also starting to see podcasts section on streaming services.
German streamer, RTL+, bundles video and music and within music there’s a podcast offering.
At a time where net new subscribers are plateauing, churn is at a all time high, bringing more value to subscribers is crucial so that:
→ they stay,
→ they increase time spent on platform.
Podcasts could be a great way to do that, don’t you think?
📺 Streamer snapshot:
Speaking about podcasting, this week saw the launch announcement of a FAST channel called PodcastOne TV.
PodcastOne is the leading advertiser-supported, on-demand digital audio network.
With a 360-degree solution, including content creation, brand integration and distribution, PodcastOne sees more than 2.1 billion downloads annually, across 350 episodes produced weekly.
They had a Youtube channel so why not a FAST channel.
Curious to see if there is an audience for that type of channel.
🎬 Content recommendation:
I can make two recommendations in one with this week’s content rec: the podcast “Smartless” and its docu-series “Smartless on the road” on HBO.
The genesis: Sean Haye, Jason Bateman and Will Arnett are friends and started the podcast when they were bored out of their minds during the pandemic.
The concept: They catch up on life while a secret guest (chosen by one of the 3 hosts) waits on Zoom to join. Afterwards, they are supposed to move into interview mode but this looks nothing like a traditional interview, the guests speak less than the hosts 😆.
This is what makes the show amazing. You feel like you’re spending an hour with Matt Damon, Jennifer Aniston, Arcade Fire or Depeche Mode.
Oh this hobby was sold to Wondery / Amazon for 80M$.
If you haven’t listened to it yet, rush to it. It’s my go to every Monday.
That’s it folks. Enjoy your weekend and see you next Friday for another edition of Streaming Made Easy!
By night, I write Streaming Made Easy and post each working day on Linkedin.
By day, I run The Local Act, a streaming video consultancy.
Whenever you’re ready, there are 4 ways I can help you:
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