Netflix faces questions about its business for several reasons. Engagement with the platform has fallen short of expectations, and the company recently underwent a round of layoffs that included the departure of Bela Bajaria, its chief content officer. Meanwhile, its stock price has declined, prompting analysts to question its long-term strategy and investments.
One question about Netflix remains unanswered: How are its podcasts performing? While the company has expressed satisfaction with the data it has seen, it has been reluctant to share those results publicly. However, for anyone questioning Netflix’s long-term commitment to podcasting, a hire announced Tuesday offered a reason to believe the company intends to stick around.
The company hired former Apple podcast executive Steve Wilson as a consultant. Wilson brings considerable experience to Netflix, having worked in the podcast space at Apple before spending the past five years with Daylight Media.
The hire is significant. If podcasts are going to remain a long-term part of Netflix’s strategy, the company needs someone with experience to oversee that growth. Podcasting requires a different approach than producing movies or television shows. The content is more timely, driven by personality and often connected to conversations that audiences are already having.
But Netflix also must overcome a fundamental challenge: Why should viewers pay to watch or listen to content they can find for free on other podcast platforms? That raises another question: Why didn’t Netflix make this type of hire before investing in podcasting?
The company signaled its intentions for months before securing deals with iHeartMedia, Spotify and Barstool Sports, among others. If Netflix wants to think, invest and operate like YouTube in the podcast space, why didn’t it bring in someone like Wilson from the beginning?
Regardless, the move has been made. Wilson’s hiring was also the first under new chief content officer Peter Rice. That should be noteworthy to those in the industry. Following a round of cuts, Netflix’s first new hire under its new content chief is someone focused on podcasting.
All of this is good news for creators, and the reasons are simple.
Follow The Money
Since Netflix signaled its intention to establish a foothold in podcasting, competitors have continued to expand their offerings. YouTube has offered millions of dollars to popular creators to keep their video content exclusive to its platform. Disney+, Hulu and Tubi have also expanded their video podcast offerings. Meanwhile, Spotify has expanded its Partner Program into 35 additional countries.
Podcast consumption is also growing.
At Podcast Movement, a study found that 21% of podcast consumers had used Netflix as a podcast platform in the previous 12 months. That placed Netflix third behind YouTube (63%) and Spotify (33%), but ahead of Apple Podcasts (15%).
Did Netflix’s entry into podcasting drive all this industry expansion? Probably not. However, some of these developments could be tied directly to the company’s willingness to invest in the space.
That’s why Wilson’s hiring matters. It’s significant not only to the health and viability of Netflix’s podcast strategy but also to the continued growth of the medium and the opportunities available to creators. If the biggest platforms in media aren’t willing to invest, the industry’s growth potential could diminish.
Why Participation Matters For All
Earlier this summer, at the Barrett Media Summit, Funk Flex argued that the radio industry shouldn’t celebrate the layoffs iHeartMedia underwent shortly before the event. His reasoning was straightforward: When a major company struggles, the consequences can extend beyond its own business.
“We could look at the iHeart cuts as other companies snicker. But I’m going to tell you something. IHeart is the one-hundred-pound Gorilla. They don’t make it, nobody makes it. Because they believe in it like we believe in it [radio],” Flex said in June.
Could the same principle apply to Netflix and podcasting?
YouTube has dominated podcast discovery and overall consumption of video podcasts. Yet the platform has also responded to Netflix’s moves by competing for creators and their exclusive content. That suggests Netflix’s entry into the space could influence the strategies of even its established competitors.
The point isn’t that Netflix needs to become the biggest podcast platform overnight. It needs to show creators that it understands the medium, is willing to invest in the people who make it work and intends to stick around long enough to help it grow.
Wilson’s hiring is a step in that direction.
A Great Sign For Everyone
For creators, that commitment matters. The more platforms compete for their content, the more opportunities creators have to build audiences, expand their reach and generate revenue.
That’s why the industry should welcome Netflix’s latest investment, even as questions remain about its performance. The goal shouldn’t be to determine which platform wins. It should be to ensure that more platforms are willing to compete in the first place.
Funk Flex was right about iHeartMedia’s importance to radio. The same principle applies to Netflix and podcasting. When a major player invests in the future of a medium, the entire industry has a reason to pay attention. If Netflix is serious about becoming a long-term home for podcasts, creators stand to benefit from the competition it creates.
Now comes the harder part: proving that the investment can translate into sustained consumption, meaningful returns and a strategy that lasts. Wilson’s hiring is an encouraging first step, but Netflix still has plenty to prove. At least the company has signaled that it intends to keep playing the game.
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