Netflix Eyes Video Podcasts in Plot Twist. But Why Now?

I listened to the Netflix earnings call. And like a riveting mystery series, the company dropped clues about podcasting. Take our poll: Would you watch?

Did you listen to the Netflix earnings call?

What? You didn’t?

No worries. I did on your behalf.

I listened to all 36 minutes and 54 seconds because I wanted to hear more about Netflix’s plans for podcasting.

If you attended Podcast Movement Evolutions in Chicago and wandered into the main hall looking for coffee, you ran into this display:

Yes, Netflix Podcasts.

This got me wondering: Just what is the entertainment giant up to? And why join such a crowded space?

Netflix already plays in the podcast game. (Or should we call it Squid Game?) It has 14 shows listed on its Apple channel.

Now The Wall Street Journal says Netflix wants to double revenue by the end of the decade. It’s already a behemoth with $40 billion in revenue reaching over 300 million paid households. To put things in perspective, the podcast industry last year rang up $2.4 billion in advertising revenue, according to the IAB. So we’re talking about a grapefruit (Netflix) wanting to mingle with grapes (podcasting.)

So, is video podcasting a revenue play for Netflix? I still need more convincing. The company just posted a record profit and it’s showing signs it will weather an economic downturn with or without video podcasts.

With YouTube and Spotify pushing into video podcasts, this feels more like a protective play by Netflix. Or an explorative one.

As Netflix co-CEO Ted Sarandos told the earnings call: “So, we're constantly looking at all different types of content and content creators. The lines between podcast and talk shows are getting pretty blurry. We want to work with kind of great creators across all kinds of media that consumers love. And podcasts to your point have become a lot more video forward.”

Meantime, Netflix appears committed to its current roster of 14 shows.

“And today we actually produce a lot of podcasts ourselves as part of our kind of publicity and publishing efforts,” Sarandos said. “So, some are really show specific like Sweet Game and Diplomat. Some are genre focused. Some are talent focused. We have a great one called You Can't Make This Up all about Netflix docs. And they live everywhere podcasts live today. But as the popularity of video podcasts grow, I suspect you'll see some of them find their way to Netflix.”

Want to hear Sarandos in his own words? James Cridland at Podnews snagged this:

In other words: Stay tuned! And make sure you listen to the next earnings call!

Things to Think About: How would Netflix differ from YouTube? How would its video podcasts stand out? What kind of content is Netflix really looking for? And does Netflix really need video podcasts to drive more subscriptions and revenue?

Take Our Poll:

MY RECOMMENDATION If you need a quick chuckle in three minutes or so (and who doesn’t these days?) then check out the Netflix Is A Daily Joke podcast.

John Wordock served as Executive Editor and SVP for Podcasting at Westwood One from 2019 to 2024, helping build Cumulus Podcast Network into a top ten network and top channel on Apple Podcasts. He also used to be Executive Producer for podcasts at The Wall Street Journal until 2019. He now runs his own podcast consulting company, John Wordock Media.