Netflix is partnering with Spotify to stream a slate of video podcasts, including shows from Bill Simmons' The Ringer, in a move to enter the podcasting space without building its own service from scratch, as reported by Deadline.
Content on the cheap: The move gives Netflix a new pipeline of personality-driven content without the high overhead of producing its own scripted shows. The deal makes good on a comment from co-CEO Ted Sarandos, who said during an April earnings call that he suspected video podcasts would eventually find their way to the platform.
A bigger stage: For Spotify, the partnership provides a massive new distribution channel for its creators. The audio giant, which acquired The Ringer in 2020 for a reported $200 million, framed the deal as a way to help creators reach new audiences and expand discovery.
Taking aim at YouTube: In a direct challenge to YouTube, the deal will reportedly see some of the shows pulled from the video site. Viewers will still see Spotify’s embedded ads, but Netflix won’t be inserting its own commercial breaks.
By adding established podcasts to its library of shows, movies, and games, Netflix is betting it can turn passive couch time into a multi-format entertainment hub.
Also on our radar: The deal comes as Netflix is also pushing deeper into the living room with a new collection of TV-based party games that use smartphones as controllers. Meanwhile, Spotify is seeing its own content diversification pay off, with a new report showing major growth in audiobook listeners on its platform. Netflix is even planning to extend its brand into the physical world with the launch of immersive entertainment venues called Netflix House.
