Netflix and Spotify recently announced a partnership to bring video podcasts to the streaming giant. Netflix co-CEO Greg Peters is sharing insight into the genesis of the deal.
As part of the deal, podcasts from the true crime, culture and lifestyle, and sports podcasts — namely from The Ringer, founded by Bill Simons and sold to Spotify in 2020 for $250 million — will be headed to Netflix.
In the company’s investor call, Peters shared that the decision to partner with Spotify was driven by audience demand.
“We’re going to build into this category like we do with our other categories based on demand signals that we get from our members,” Co-CEO Greg Peters said. “We see this as really the opportunity to integrate high-quality video podcasts that broadens the Netflix offering beyond all the incredible films and series, beyond the live events that we are building, stand-up specials, and games. We hope that ultimately reinforces our value as the most important service for your entertainment needs.”
Also included on the call was a note from Peters about advertising. He shared that the company fully expects its advertising revenue to double in 2025 compared to last year, adding that the streaming service will feature interactive ads later this year.
“Advertisers are excited about our growing scale. We’ve got a highly attentive and engaged audience,” Peters said. “The rollout of our ad tech stack means we’ve got more formats, we’ve got more measurement, we’ve got more ways to buy. Our slate is a critical and important source of competitive differentiation. I would say we are feeling good about our growth trajectory.”
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