Netflix and spotify Partner too challenge YouTube‘s Dominance in Video Podcasting
LOS ANGELES, CA – In a move signaling a notable shift in the digital audio and video landscape, Netflix and Spotify have announced a partnership to co-distribute select video podcasts, directly challenging YouTube’s current stronghold on the format. The collaboration, unveiled this week, aims to leverage Netflix’s massive subscriber base and Spotify’s podcasting expertise to expand the reach and monetization of video podcasts.
The partnership marks a new phase for Spotify, which has been experimenting with video podcasting after a period of heavy investment in exclusive audio content between 2019 and 2023. According to Spotify, 170 million users had already watched a video podcast on its platform as of June 2024. “This partnership marks a new chapter for podcasting,” stated Roman Wasenmüller, vice president of podcasts at Spotify.
Netflix views the collaboration as a key strategy to diversify its content offerings beyond conventional series and films, and to tap into new revenue streams. “We are constantly looking for new ways to entertain our subscribers, wherever and though they want,” explained Lauren Smith, vice president of content strategy at Netflix. “This partnership with Spotify allows us to bring new voices, new formats and strengthen the loyalty of our subscribers.”
The podcasts will remain available on Spotify, but will no longer be fully distributed on YouTube. While host-read advertisements will continue, Netflix currently has no plans to add further advertising to the podcasts, though the platform is actively seeking to grow its advertising revenue. Netflix aims to more than double its advertising revenue in 2025 and reach nine billion dollars by 2030, currently boasting 94 million users on its ad-supported tier across 12 countries.
This alliance represents a broader convergence of audio and video formats, with both companies seeking to capitalize on the growing popularity of podcasting. For Spotify, it’s a path to profitability after scaling back costly exclusivity deals.for Netflix, it’s an expansion into live and sports content, alongside a broader strategy to solidify its position in the digital entertainment space.
The initial rollout will begin in the United States, with potential expansion to European markets, including France, dependent on the partnership’s success.The move positions Netflix and Spotify as formidable competitors to YouTube in the rapidly evolving world of video podcasting.
