Earlier this week, a report surfaced that Amazon is shuttering the Wondery podcast studio that it purchased for a reported $300 million in 2020.
Since that report surfaced, Amazon has refuted the claims, stating that it will still utilize Wondery as a brand name, but has simply split the studio’s workforce into different divisions. Its narrative podcast studio — which features stories ike Dr. Death, American History Tellers, and American Scandal — will be absorbed by Audible. While it’s creator-based content will shift its strategy to better compete with the likes of YouTube and Spotify.
What isn’t up for debate, however, is that Amazon is slashing 110 jobs from the podcast industry.
Barrett Media reached out to podcast industry experts to gauge what their view of the development is, what it says about the current state of the industry, and if the job cuts and potential shuttering of a podcast industry titan signal rough waters ahead.
“This is a meaningful inflection point for the industry,” said Amplifi Media CEO Steven Goldstein. “While it may feel sudden, the writing has been on the wall. Audible had a significant footprint at Podcast Movement in April and was one of the most visible sponsors at Podcast Show London just a few months ago. I’ve spoken with one of their biz dev people. Those were strong signals that Amazon was preparing to realign its podcast strategy.
“This consolidation reflects a broader shift happening in the industry: the move away from high-cost, narrative-first podcasting toward more scalable, monetizable, and creator-driven formats—especially those that embrace video,” Goldstein continued. “Podcasting is maturing. The early phase was defined by experimentation, prestige content, and storytelling craft. Now, we’re seeing the gravitational pull of audience growth and monetization shift toward shows that move faster, connect with personalities, and perform well across platforms like YouTube and TikTok.”
“I do think it is important to note that this isn’t Amazon pulling out of podcasting,” said Sounds Profitable partner Tom Webster, who noted his company will do what it can to help those employees affected by the layoffs. “This is Amazon reorganizing podcasting into two different buckets – their big “creator” deals that involve multiple content platforms, and podcasts (generally audio) that are well-suited to be produced under the existing infrastructure of Audible. To me, this is less about the podcasting space and more about how Amazon typically ingests and integrates its acquisitions.”
“On the one hand, this reorganization is unique to Amazon’s business, especially given that narrative audio already had a home within Audible,” said Signal Hill Insights President Paul Riismandel. “At the same time, this is just another signpost indicating how podcasting is shifting, with the growing influence of creators and video.
“Podcasting has always been a medium of creators, and I’d argue that podcasters were ‘creators’ before the term as we use it today was coined – Marc Maron or the hosts of My Favorite Murder are just two examples. There’s always been some line between host/creator-driven and narrative-driven podcasts, and many podcast studios have organized their business understanding this difference,” Riismandel added. “Some even specialize in one or the other. So, at a macro-level, one can see the logic in Amazon splitting these teams.”
We also spoke with Lindsay Graham. Not to be confused with the U.S. Senator from South Carolina, Graham has hosted 86 seasons of American History Tellers for Wondery, with many other projects — including American Scandal and 1865, as well — for the studio.
He stated that, from his standpoint, Podcasting has “reached a moment of identity crisis.
“With the ‘rise of video’ has come some confusion about what podcasts even are, but more importantly, how they can be created sustainably and monetized properly,” said Graham. “It appears to me that Wondery has realized that there are fundamental differences between creator/celebrity/personality-driven shows that offer low production costs and greater portability to video, and those podcasts Wondery made its name on: audio-first narratives that take longer and more resources to make.
“For a single organization, these differences — in budget, in monetization, in content creation, in growth strategy, in audience development — can lead to a lack of focus,” Graham continued. “Should Wondery chase the big win of a hit creator-driven show? Can that sort of success even be predicted or created? Or is it always like catching lightning in a bottle? Or, should Wondery knuckle down on the yeoman work of putting out interesting and entertaining audio content, every week, like it does with American Scandal? There are not many true similarities between Dr. Death and New Heights. They’re made differently, they’re consumed differently, they’re monetized differently, they grow differently, they’re sustained differently.
“This is the reality Amazon faced. It appears to me that they’ve made the decision to place audio-first, narrative content with Audible, a company that lives in the audio-first, narrative space, and has for decades. That’s their lane … For names like LeBron James, Travis Kelce, even Monica Lewinsky, this might be a better fit where there is enormous cross-platform or ‘pan-Amazon’ potential. A LeBron James podcast isn’t really a podcast; it’s a franchise extension.
“And this means, I hope, that podcasts like American Scandal — a show that has consistently received millions of downloads a month for years — can continue to live on without the pressure of trying to be something it’s not, without a ‘pivot to video’ FOMO pulling focus away from what it does well, and sustainably.”
All three of our experts agreed that the move doesn’t signal an abandonment of the podcast genre by Amazon. In fact, some argued that it could ultimately lead to an expansion for Amazon to allocate its resources more efficiently after cutting the staff at Wondery.
However, all state that there were major implications for the podcast business as a whole with this move.
“This is another chapter in the rapid evolution of the podcast space,” Goldstein stated. “Spotify wants to become YouTube. YouTube wants to become Netflix. And Amazon, long playing a broader audio game, now sees the need to approach this market with more scale and focus. It’s important to keep in mind the audiobook business is far bigger than podcasting – roughly $8 billion vs $3 billion, so there is great synergy and it must have made sense to fold it into Audible.
“It also speaks to the growing divide between two very different kinds of podcast content: Creator-led, personality-first shows that are more nimble, often video-friendly, and align better with today’s consumption patterns. Narrative, story-first shows that are expensive and hard to monetize at scale,” he concluded.
When asked about what the move said about the future of the business, Tom Webster argued that the focus should be on the now, instead.
“It says a lot about the present of the podcast business, which is an acknowledgement of the importance of video, and Amazon’s restructuring here simply makes that clear,” said Webster.
“As far as its relevance to the future of podcasting, I’d say this: a couple of years ago, Amazon laid off a bunch of people from its Zappos acquisition. I believe the future of shoes, however, remains bright.”
Riismandel said the move isn’t likely to be a bellwether for the industry as a whole
“It appears Amazon is reacting to a changing marketplace and changing consumer demand that has already been the talk of the business for quite some time,” said Riismandel. “Podcasting is dynamic, and resilient. Despite many predictions of podcasting’s decline or death, today there are more podcast consumers than ever before.
“As long as people want and need media that is ears-first and eyes optional – and this shows no sign of slowing down – then podcasting has a bright future. Podcasting also benefits from a diversity of publishers, producers, creators, and platforms. It’s still true that no one actor yet has enough influence to make or break the medium.”
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