The unexplainable desire to watch our favourite podcast hosts talk into a microphone has created a new frontier in the streaming wars.
Driving the news: Viewers tuned in for a staggering 700 million hours of podcasts on YouTube in October, nearly double the amount of time as the same month last year, per Bloomberg.
The rise of video podcasts has helped YouTube become the undisputed king of living room entertainment, grabbing 13% of all TV viewing last month — more than any other service, including Netflix.
Why it matters: Aside from live sports rights, hit podcasts have become arguably the most valuable video content for platforms to hold. Just this week, Netflix signed deals with iHeart Radio and Barstool Sports to exclusively stream the video versions of popular shows like Spittin' Chicklets, The Breakfast Club, and Pardon My Take.
In October, the company signed a similar deal with Spotify to bring a curated roster of hit video podcasts to the platform, including shows from The Ringer network.
Yes, but: Making big-name shows exclusive can alienate audiences and doesn’t necessarily translate to profits, a lesson Spotify learned the hard way after spending over US$1 billion on podcast deals with Kim Kardashian, the Obamas, and Prince Harry and Meghan Markle.
Our take: With a fresh slate of podcasts, live events, and creator-led content (including deals with YouTube stars Ms. Rachel and Mark Rober), we expect to see a much more YouTube-y version of Netflix in the coming years.—LA