New York Times Doubles Podcast with ‘Serial’ Acquisition
Podcasts have taken the media industry by storm. A recent Infinite Dial study indicated that the podcast industry is growing at a rapid pace with over 100 million Americans listening to a podcast in the past month.
With a sort of fan base, it’s no surprise that media companies like Spotify (NYSE: SPOT) and The New York Times (NYSE: NYT) invest in this space have a presence where listeners increasingly receive their news and entertainment.
Developing in audio journalism
The New York Times is a media powerhouse best known for its iconic newspaper. However, the company has come a long way from the early days of newspapers and now primarily provides its news and entertainment content in digital form. As digital products continue to evolve in society, the publisher aims to adapt with the times to keep subscribers and advertisers in their ecosystem.
To build on the foundation he established in podcasting with his popular show “The Daily,” The New York Times acquired media start-up Listen In Audio earlier this year. And in its latest move, the company has now acquired the production company behind the hit podcast “Serial” – a documentary series that has drawn an audience of millions of listeners interested in its deep dive into controversial court cases and lawsuits. murder charges. This acquisition will boost the company’s short-term ambitions and provide it with top-notch talents and a new audience to expand its reach.
The New York Times push in podcasting is a way for the company to stay relevant and shift its resources to the mediums through which people consume content.
Spotify’s aggressive push into podcasting
Spotify has also created waves in acquire several podcast productions. Over the past two years, the company has spent nearly $ 1 billion to acquire a series of podcasts and production companies, including The Ringer, Gimlet Media, Parcast, Anchor FM, and Joe Rogan Experience.
These agreements allow Spotify to distribute podcast content and add exclusive series that listeners have enjoyed for years. CEO Daniel Ek said during the company’s fourth quarter earnings call: “[P]Odcast users are not only more involved with Spotify overall, but because of this engagement, they also listen to more music. “
While Spotify and The New York Times both see a bright future for the podcast industry, each company has its own reason for entering the space. Spotify believes that by growing its podcast library, the company will attract more listeners, keep current listeners engaged, and increase its paid subscriber base overall. It also marks Spotify’s first attempts to cultivate exclusive content, which may help differentiate it from competing audio services (not so easy to do with music). In contrast, the New York Times wants to avoid the fallout from subscribers and advertisers that led to the decline of newspapers across the country.
Much money to be made from podcasting?
Podcasts are all the rage because the ubiquitous access to smartphones has made them extremely accessible and convenient. With over a million different shows available, its popularity will continue to grow.
The industry is still small in terms of total advertising dollars, but it is expected to make $ 1 billion annually over the next several years thanks to a large and growing audience. In the media industry, the money usually goes where the consumption takes place, suggesting that podcasts will be a big deal in due course.
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