From The Hollywood Reporter:
As top podcast executives and creators gathered at the Wythe Hotel in Brooklyn for the Hot Pod Summit on Feb. 23, a question seemed to underlie each conversation: As the industry seeks an injection of new energy amid an advertising market correction and creators experiment with formats like video, what really is a podcast these days — and how will people make money?
In various conversations with studio executives and creators, a common refrain were the difficulties of turning a profit on podcasting alone. Even Spotify, which recently revised its podcast leadership (again) and had layoffs and show cancelations in its podcast division, is reevaluating its spending after pouring more than $1 billion into licensing deals and acquisitions in the past few years.
As such, repackaging audio content and seeking out derivatives like film and TV adaptations could be the key to actually making good money in podcasting, especially now that the megadeals of recent years are getting rarer and podcasters are feeling the pressure to seek out more ad dollars from bigger buyers to keep the lights on long term. And all of this isn’t even to acknowledge the creative ambitions around podcasting, where creators want to produce expensive, buzzy narrative projects that can have a tangible impact on policy or public conversation but may have a harder time receiving funding and support compared to the more assured successes of cheaper, always-on chat shows.
But the move toward new formats was hard to ignore, especially as Spotify’s main presence at a summit for podcast executives was about, well, audiobooks. Featuring Nir Zicherman, the co-founder of the podcast hosting service Anchor who now leads up Spotify’s audiobooks business, author Gretchen Rubin and Penguin Random House Audio content executive Dan Zitt, the discussion didn’t avoid the blurring lines between podcasts and audiobooks and the multiple business models that could exist within that mix.
“Everybody’s scared to call a podcast an audiobook and an audiobook a podcast. But if you really squint, it’s harder to differentiate — and that is only accelerating over the course of the next few years,” Zicherman said at the summit, noting that Spotify was seeking to target the “casual listener” with its audiobooks offering.
. . . .
Zitt was even less precious about a delineation between the two. “Why does there have to be a line drawn at all? This is all audio entertainment to some extent. If there are different models for distributing it, which there are, why not just find the best models to distribute it where people get fairly paid?” Zitt said. “I mean, there are podcasts that are basically now taking all 15 episodes, combining them into one, and selling them in the audiobook space, so it’s not really like these things are working independently now.”
But the audiobooks debate paled in comparison to the trend du jour: how video can be incorporated into audio creators’ workflow and boost business for executives. “Last year when we were all in this room, we could not stop talking about Spotify,” The Verge editor Nilay Patel said in a talk with iHeartMedia Digital Audio Group CEO Conal Byrne. “This year, all in this room, we’re all talking about YouTube and video.”
Despite podcasting being known as an audio medium, there’s been growing interest around the role of video podcasting — a format most notably seeing interest from players like Spotify, where top creators including Alex Cooper (Call Her Daddy) and Emma Chamberlain (Anything Goes) now regularly release video podcasts as part of their exclusive partnerships with the company. For Cooper, her video podcasts focus on her weekly guests who sit down to tape an interview at her West Hollywood studio, though the creator released a documentary-style video on abortion last October; Chamberlain, who only recently joined Spotify, has so far released two static videos of her recording her podcast in front of the mic.
Link to the rest at The Hollywood Reporter