Wondery’s Strategic Shift to Video Podcasting: Industry Analysis
Wondery, the Amazon-owned podcasting powerhouse, has announced a major strategic pivot toward video content as the podcasting industry continues to evolve.
Major Changes at Wondery
As of August 4th, Wondery will transfer its narrative podcast portfolio, including popular shows like Dr. Death, American Scandal, and Business Wars, to Audible. High-profile video-focused podcasts, such as the Kelce brothers’ New Heights, Dax Shepard’s Armchair Expert, and LeBron James’ Mind The Game, will remain under the Wondery brand but transition to Amazon’s creator services team.
Impact on the Organization
The restructuring has led to approximately 110 employee layoffs, with CEO Jen Sargent announcing her departure. Sources indicate that the majority of affected staff were connected to the narrative podcasting division.
Strategic Reasons Behind the Move
- Shift in consumer preference toward video content
- Higher production costs for narrative shows
- Limited monetization potential for series-based content
- Amazon’s profitability mandate for year-end
YouTube’s Dominance in Video Podcasting
YouTube has emerged as the undisputed leader in video podcasting, boasting 1 billion monthly active podcast viewers as of February. The platform’s success is attributed to its vast user base and algorithmic recommendations, generating nearly $10 billion in quarterly advertising revenue.
Industry-Wide Transformation
Spotify has also embraced video podcasting in 2024, reporting that video podcast consumption has grown 20 times faster than audio-only content. The platform now features over 430,000 video podcasts, marking a significant shift from its previous exclusive distribution model.
Future of Narrative Podcasting
Industry experts maintain that this transition doesn’t signal the end of narrative podcasts. The consolidation of Wondery’s narrative content with Audible represents a logical business alignment, while overall podcast consumption and advertising continue to grow across various formats.
As one industry expert notes, “It’s not all one or the other. The success of video podcasting isn’t a detriment to the success of audio podcasting.”