Netflix has officially planted its flag in the podcast industry. Just under a year after the subscription-based streaming platform began signing exclusive video partnerships with some of the industry’s top creators, it now has YouTube’s attention. According to a report by Bloomberg, YouTube is reportedly offering millions of dollars to keep its top creators from shifting to Netflix and the checks Netflix is willing to write.
What a difference a year makes. This time last year, Netflix was positioning itself to dabble in the podcast world, arranging up to 75 deals with shows for its launch and seeing how the industry would adapt. Just eight months later, YouTube is getting nervous. And rightfully so.
As the podcast industry continues to shift toward a video-first model, YouTube had the early lead in reach, accessibility and overall success with the medium. The barrier to entry was minimal, with a global audience yearning for any type of niche content. In turn, YouTube became the singular video platform for podcasting that mattered.
Then Netflix came along. Hulu followed, then Tubi and other streaming platforms. Each began fortifying partnerships with content that had already proven it could win on YouTube. Big money. Big brands. Big possibilities. Streaming companies are now willing to pay for exclusivity in an era when consumers have become accustomed to non-exclusive content.
The formula is working, and YouTube is being forced to react.
Live Event Engagement
That’s why the recent news that YouTube started counting views as soon as a video starts playing wasn’t surprising. It was another step toward making the platform more attractive to creators. YouTube is looking for ways to strengthen the relationship between the platform and the people responsible for bringing audiences to it.
Now, YouTube is reportedly willing to take that relationship a step further by paying top creators if they agree to upload their videos exclusively to its site. This is great news for the podcast industry. It could also be great news for sports radio.
Because every streaming service wants a podcast strategy but also a live event strategy. The question is whether sports radio recognizes that it may already have exactly what those platforms are looking for.
The formula is simple. Streaming platforms like Netflix, YouTube, Twitch, Tubi and others are in the subscriber game. Any programming they can acquire that drives engagement and subscriptions is valuable programming. When Netflix released its latest viewership data, it intentionally omitted viewership data for its podcast categories.
However, the company did say viewership for its podcast acquisitions over-indexed during the day and on mobile devices. That should get the attention of sports radio stations and the companies that run them.
What category of entertainment provides an endless opportunity for daytime viewing while also delivering the live “event” element that Netflix desires most? Sports radio.
Tell The Story
That’s why iHeartMedia and Netflix partnered with The Breakfast Club earlier this year to exclusively stream video of the radio program live on Netflix. It wasn’t simply about putting another podcast on a streaming service. It was about taking an established radio program, its audience and its personalities and turning that existing product into live video programming for a global streaming audience.
Sports radio has that same opportunity. How many sports radio brands give YouTube their product for free every day? Why wouldn’t there be a streaming video hub for Audacy Sports brands on Netflix? Could DAZN find a way into the sports media rights game with streaming video-exclusive deals involving iHeartMedia sports radio brands?
These aren’t just hypothetical questions. They represent the larger opportunity created by the growing competition for video audiences.
Streaming platforms are no longer simply looking for television shows and movies. They are looking for personalities, communities and programming that gives viewers a reason to open an app every day. Sports radio checks all three boxes.
It has personalities people build relationships with. Numerous communities built around teams and local sports. And unlike much of the traditional podcast business, it already produces live, topical programming for hours every day.
The product, audience, and infrastructure already exists. What’s missing is the investment and the vision to connect all three.
Bet On The Future
Netflix’s desire to become a player in podcasting could, in fact, be a turning point for how sports radio is consumed on video. But sports radio shouldn’t wait for Netflix to discover the opportunity. It should be presenting the opportunity to every streaming platform willing to listen. And the first platform to recognize the value could have a significant advantage.
YouTube’s willingness to pay creators to stay should be a wake-up call for sports radio. Stop giving the platform millions of hours of content every month for free. If the platform is serious about protecting its position as the home of video podcasting, it should start by protecting the sports radio brands that have already built audiences there.
Sports radio has something streaming platforms spend billions of dollars trying to create: a reason for people to come back tomorrow. And the next day, and the next day.
If YouTube is prepared to write checks to keep creators from taking their audiences elsewhere, sports radio should be near the top of that list. Because the next Netflix, Hulu or Tubi partnership may not be looking for another podcast creator. It may be looking for a sports radio brand. And rightfully, it should be.
If YouTube waits until someone else writes that check first, it may discover that the creators it was trying to protect were never the only ones worth keeping.
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John Mamola is Barrett Media’s sports editor and daily sports columnist. He brings over two decades of experience (Chicago, Tampa/St Petersburg) in the broadcast industry with expertise in brand management, sales, promotions, producing, imaging, hosting, talent coaching, talent development, web development, social media strategy and design, video production, creative writing, partnership building, communication/networking with a long track record of growth and success. He is a five-time recognized top 20 program director in a major market via Barrett Medi’s Top 20 series and has been honored internally multiple times as station/brand of the year (Tampa, FL) and employee of the month (Tampa, FL) by iHeartMedia. Connect with John by email at John@BarrettMedia.com.