Netflix, the streaming giant that revolutionized television consumption, is making strategic moves to enter the video podcast space, as YouTube continues to dominate television streaming in the United States.
Industry insiders reveal that Netflix has been actively exploring partnerships with podcast creators, marking a notable shift in the company's content strategy. This development comes as recent data shows YouTube has become the preferred platform for podcast consumption, surpassing both Spotify and Apple in the fourth quarter of 2024.
The streaming service's interest in video podcasts was highlighted by its previous discussions with Alex Cooper, host of "Call Her Daddy," though Cooper ultimately signed with SiriusXM in a deal reportedly worth up to $125 million.
Video podcasts present an attractive opportunity for Netflix, offering cost-effective content production compared to traditional scripted programming. A talent agent familiar with Netflix's strategy noted that the company has become increasingly receptive to talk-based video shows, actively seeking specific creators who could fit their platform.
The timing appears strategic, as YouTube reported 400 million hours of podcast viewing on televisions in 2024. The format has particularly resonated with younger audiences, with 89% of Gen Z weekly podcast listeners engaging with video podcast content.
Netflix has already shown openness to creator-led content, bringing YouTube personalities like the Sidemen and educational creator Ms Rachel to its platform. The company's recent signing of comedian John Mulaney for a 12-week show suggests continued interest in talk-format programming.
Industry experts suggest Netflix might pursue various approaches, from licensing existing podcasts to creating exclusive content. The platform could differentiate itself by offering ad-free versions of shows or developing unique supplementary content with podcast hosts.
While Netflix is unlikely to immediately challenge YouTube's market position, this move into video podcasts represents a strategic effort to capture a growing segment of entertainment consumption and expand its content portfolio in a cost-effective manner.