"Netflix this week said it was getting into the podcast business - but not by producing its own shows. Instead, the world's biggest video-subscription service said it had struck a deal with Spotify - the planet's dominant audio-subscription platform - to stream a decent-size selection of Spotify-owned video pods. Starting next year, you'll be able to get your Bill Simmons fix in the same place you watch Bridgerton and WWE Raw."
"Josef Adalian: So, in your story, you point out the ways in which this deal is a win for both companies. Spotify gets exposure for its podcasts and presumably some syndication revenue - see also the deal it did this week for a Ringer-centric FAST channel on Samsung TV Plus - while Netflix gets a jolt of topical content that should, in theory, prompt users to open the app more often and help them feel like they're getting extra value from their subscription."
"Nicholas Quah: I wouldn't call it desperation, necessarily. It feels more like Spotify is trying to reframe the value of its original podcast investments in a way that better aligns with where the company is now. Spotify has long backed away from wanting to fully own and operate its own shows, finding more value in serving as a tech, monetization, and distribution platform for podcasters."
Netflix and Spotify struck a deal for Netflix to stream a selection of Spotify-owned video podcasts beginning next year. Spotify gains broader distribution and potential syndication revenue while Netflix acquires topical, appointment-driving content to increase app opens and perceived subscription value. Spotify appears to be reframing its podcast strategy away from fully owning shows toward providing technology, monetization, and distribution services. The Ringer and Bill Simmons remain important assets, with Simmons visible to advertisers and experimenting with video podcasting. The arrangement underscores shifting platform roles and raises questions about each company’s strategic positioning and long-term objectives.
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