YouTube is currently the biggest platform for consumption across both podcasts and music streaming, according to Activate. Its study found that 81% of US listeners aged 18+ listen to both podcasts and music on the same device.
Major music streaming services have been acquiring podcast titles, production companies, and podcast technology firms, encouraging users to listen to music and podcast episodes in one place. With over two billion users globally, YouTube uses video to increase digital audio reach. In contrast to tech and media companies seeing growth stall in the third quarter, Spotify collected €385m ($397m) in ad-supported revenue, “led by podcasting”, as specified by the music company.
Apple funded podcast production company Futuro Studios this summer, stepping up investment in creating its original podcasts. However, the deal was led by Apple TV studio instead of Apple Podcasts, first reported by Bloomberg.
In Q3, after reporting a 15% increase in ad revenue and a 9% lift in subscription revenue, Amazon announced an agreement with Acast to offer listeners of its podcasts ad-free access through Amazon Music.
The latest WARC Media consumption forecast shows that global podcast consumption will continue to increase in 2023. Podcasts might be undervalued by as much as $40bn and present a major opportunity for brands.