Netflix is exploring video podcasts as part of its next growth phase, according to a recent article by Business Insider. The streaming giant has reportedly been in talks with podcasters to bring creator-led, talk-based video content to its platform. This move follows the increasing popularity of video podcasts, particularly on YouTube, which has become a major player in the podcasting space.

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While Netflix has dabbled in talk-style content, it hasn’t fully embraced podcasting—until now. The company reportedly pursued Call Her Daddy host Alex Cooper, even considering her as the face of a new show. Though she signed a $125 million deal with SiriusXM, Netflix remains in the hunt for top podcast talent.

Why Is Netflix Betting on Video Podcasts?

The appeal of video podcasts for Netflix comes down to cost efficiency, audience retention, and ad revenue potential.

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1. Lower Production Costs – Producing a video podcast is significantly cheaper than scripted TV or film content, allowing Netflix to generate high volumes of content without the substantial budgets associated with its original series and movies.
   
2. Engagement and Retention – Video podcasts encourage regular audience engagement, similar to traditional late-night and daytime talk shows. By incorporating them into its platform, Netflix can increase regular platform engagement and subscriber retention.
   
3. Advertising Opportunities – Netflix has already introduced an ad-supported subscription tier. Adding video podcasts expands its ad inventory, opening up new revenue streams. Since podcast audiences are typically highly engaged, this presents a prime advertising opportunity.
   

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Research suggests that Gen Z, in particular, prefers podcasts with video elements. A recent Edison Research report found that 89% of weekly Gen Z podcast listeners watched or listened to video podcasts by the end of 2024. Additionally, YouTube users watched 400 million hours of podcasts on televisions in 2024, reinforcing the growing demand for video-integrated podcast content.

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The Bigger Picture

Netflix’s move into video podcasts reflects broader shifts in media consumption and influencer marketing:

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• Streaming Meets the Creator Economy – Traditionally, platforms like YouTube and Spotify have dominated creator-led content. If Netflix successfully integrates video podcasts, it could mark an interesting shift for creators.
• Competitive Challenge to YouTube – While Netflix is unlikely to dethrone YouTube overnight, its entry into video podcasting could chip away at YouTube’s reign, particularly if Netflix secures exclusive content.
• New Podcasting Deals on the Horizon – The podcast industry has seen massive deals from platforms like Spotify, Amazon, and SiriusXM. If Netflix joins in, it could fuel a new wave of high-profile acquisitions and partnerships.

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Netflix has already welcomed YouTube-born creators like the Sidemen and Ms Rachel, showing an increasing openness to creator-driven content. If successful, this expansion could mean more money for creators and open up new avenues for brand collaborations within the Netflix world. You can read BI's full article here.

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