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Netflix is ramping up the ambitions of a major video podcast push, set for early 2026, as it seeks to challenge YouTube's dominance in the space.
The streamer told potential partners it wants to have 50 to 75 shows at launch, two dealmakers told Business Insider, with one hearing the platform is looking to build that number to as many as 200 over time.
Netflix has been reaching out to top Hollywood talent agencies with a broad mandate that calls for licensing existing shows and creating new original ones. It's looking at a wide variety of genres, including pop culture, true crime, sports, and comedy.
Last month, Netflix announced a deal with Spotify to put popular shows like "The Bill Simmons Podcast" and "The Rewatchables" on its platform. It's also approached other podcast networks, including iHeartMedia, home to shows like "Jay Shetty Podcast" and "The Breakfast Club," Bloomberg reported.
Leading Netflix's licensing efforts is Lauren Smith, Netflix's VP of content licensing and programming strategy. The original content push is distributed across multiple content teams.
Netflix's move into podcasts is both a response to YouTube's growing presence as a TV player and a sign of how Netflix is expanding beyond its core TV and film roots to become a hub people turn to for all kinds of content, including live sports, games, and more.
Netflix's move into podcasts also shows how far the format has evolved, said Michael Calvin Jones, SVP of Wasserman Creators.
"What began as an audio-only medium has become a visual-first content format, essentially the modern-day counterpart to certain types of television programming that can also live in audio," he said.
Netflix's podcast pitch faces potential hurdles
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Netflix's ramp-up is encouraging to podcast insiders who love the prospect of seeing some competition for YouTube and more money flowing into the space. Podcasts have garnered newfound attention from major media companies as YouTube has emerged as the top platform for podcast consumption, surpassing Spotify and Apple. YouTube's ascent spurred many audio hosts to create video versions of their shows and also drew more influencers to the format. That, in turn, piqued the interest of video streamers like Netflix.
Netflix's pitch to podcast talent could run into some hurdles. The toughest sell: Netflix is adamant it wants hosts to take the video versions of their podcasts off YouTube. For many, that would entail giving up lucrative ad revenue and reach.
Netflix is promising to put a big marketing push behind the shows and offering money that three talent reps described as competitive. Netflix is pursuing hosts with varying degrees of fame, so the potential deals differ greatly in size, but two agents said they'd seen offers in the neighborhood of $7 million to $8 million for a yearlong licensing deal.
"This is about competing with YouTube," one agent said.
For some podcast hosts, the velvet-rope nature of Netflix and potential to reach a new audience could be a tantalizing offer. But others who have built large businesses on YouTube will think twice about leaving behind the perks that platform affords. Those include the ability to connect directly with their fans, control their content, and gather a wealth of information about their shows' performance. Being behind the Netflix paywall could also alienate some of their fans who were accustomed to watching their shows for free.
"It's such a different business model," a second agent said. "You've got to weigh Netflix against what you can do with your audience."
Netflix holds its data closer to the chest, and it isn't clear if it'll bend on that as part of negotiations. The company has told talent reps it's thinking about how to replicate community features.
Netflix also wants podcasts to come without host-read ads and run regular TV-style ads in them, just like any other show or movie on its platform, two agents said.
That would undoubtedly be a plus for some hosts who don't want to read another ad for Casper or Quince. But these types of ads are valued by advertisers for the intimate relationship they convey with the host, and some podcasters may be reluctant to trade what's been a reliable, long-term source of revenue for them for licensing dollars.
Deals ultimately could take a number of forms. In the case of Netflix's Spotify deal, for example, the shows are coming with their host-read ads.
Video pods are the new platform battle
Video podcasts have become a new battleground among media platforms and conglomerates, and given rise to mega deals like Alex Cooper's $125 million pact with SiriusXM or Amazon's deal with the Kelce brothers, reported by multiple outlets to be worth about $100 million. Fox bet big this year on podcasts, acquiring Red Seat Ventures, which handles production and ad sales for high-profile conservative podcasters including Tucker Carlson, Megyn Kelly, and Bill O'Reilly.
YouTube hasn't stood still. It just rolled out AI tools that could sway audio-only podcasters to give the video platform a shot.
For Netflix, video podcasts are part of a push to broaden its offerings, which also includes pursuing independent YouTube stars like Ms. Rachel and Mark Rober, as well as developing games. Video podcasts could be a way for the streamer to keep its viewers engaged as it approaches the limits of subscriber growth in its home US market.
When Netflix co-CEO Greg Peters was asked about the Spotify deal and podcasts in general on an October earnings call, he said he hoped the podcast push "ultimately reinforces our value as the most important service for entertainment needs."
Netflix also views podcasts as a potential complement to its TV shows. It's told agents that it wants podcasts that can promote new and renewing titles, in a modern form of the late-night TV show. The streamer is exploring how sports podcasts could interact with its growing live sports offering as well. Netflix hosts Christmas Day NFL games and has some other limited sports programming.
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