In a crowded market, the stars shine the brightest.
It was Amazon’s guiding principle in the restructuring of its audio entertainment operations. The company’s decision to consolidate the aspects of its Podcasting Wondery division with its largest audio audio division surprised the Podcasting sector when the news broke out on August 4.
Audible has been part of Amazon since 2008. Wondery, launched in 2016 by entrepreneur Hernan Lopez, was acquired at the end of 2020. In the five years that followed, the podcasting exploded as a medium, seeing in particular a large boom in improved video programming. This growth thrust prompted Amazon to make structural changes to wonder and audible.
“It was definitely a strategic decision,” explains Steve Boom, vice-president audio, Twitch and Games from Amazon Variety. “As we have seen how the market has evolved and how we have to organize ourselves at best to approach the opportunity of the market where we see the most success, it has become quite obvious to us in recent months. This acceleration of video podcasting is really what has caused this restructuring.”
Boom says that the movements have been stimulated by clear bifurcation that Amazon audio leaders began to see in Wondery’s production. Many most popular titles of the platform fell into one of the two main categories: focused on the story and focused on personality. The narrative titles tend to be deeply reported in the productions focused on real crime, history, pop culture, investigation relationships and, more and more, children centered on children. Personality programs include high -level titles such as “Armchair Expert” by Dax Shepard, “New Heights” by Travis and Jason Kelce and the next “Mind The Game” series by Lebron James.
Tom Webster, a partner of the organization of the Podcast trade seems profitable, says that Reorg d’Amazon complies with the larger trends in podcasting.
“A large part of the current story of the podcasting is really motivated by the video, even if most consumers have spent most of their time with audio only,” said Webster. “But for the biggest shows, they want to see LeBron. They want to see the Kelce brothers.”
Over time, Amazon Brass realized that the two types of podcast required different approaches to development, marketing and support for hearing. With restructuring, Wondery’s narrative titles will be added to the vast archives of programs available under the audible subscription platform. Wondery’s goal will turn to the care and food of his celebrity and personality shows.
“We have learned over time that the commercial models of these two different types of content are in fact very different,” said Boom Variety. “On the one hand, video-creator podcasts monetize incredibly well thanks to advertising. It is a very, very strong advertising company. [for narrative shows] is premium, so it makes sense to bring these two things into a single place where we can really monetize them appropriately. »»
Wondery ranks among the most popular podcast platforms in the country. But while the overall podcast market has become more and more congested in the post-countryic years, Wondery has sought to differentiate itself with the production volume and star names. More recently, ESPN and other networks are turning to video podcasts such as low -cost content options that ideally become a daily or weekly habit with viewers.
“The video has grown up much faster than audio sound in the last two or three years. And in the video segment, you really have that are really premium in terms of production values and quality of talent and guests in emissions,” explains Boom. “So there is more and more content to consume. Even if the global podcasting audience increases, with so much growth [the volume of] Content, you have a very unequal environment where some emissions increase their audience, others are flat and others are down. »»
Amazon’s audio focus will lead to around 100 layoffs in Wondery. Many staff members will go to new positions within Amazon. Jen Sargent, who has been CEO of Wondery for four years, will leave the company after a transition period.
Boom underlines that Sargent was “a phenomenal leader”, for Wondery. “Sometimes the market changes and you have to respond to these changes,” he added.
