Netflix Talks to iHeartMedia About Video Podcast Rights

Netflix is in active negotiations to license select video podcasts from iHeartMedia, the podcasting giant that recently acquired HowStuffWorks, and has indicated its interest in getting deeper into the space, five sources told Bloomberg.

The talks come after Netflix last week finalized a deal with Spotify to feature video podcasts (curated by the streaming-video provider), underscoring a broader push by Netflix to offer varied programming not limited to scripted series and films.

According to people familiar with the talks, Netflix is seeking exclusivity for the video versions, which would effectively shut down on YouTube any episodes that are affected by its requests. Not every iHeartMedia title is expected to make the cut; Variety says it’s more likely that the deal would center on a subset of high-profile franchises that are most powerful in terms of reach but least complicated rights-wise.

What the Netflix and iHeartMedia deal would accomplish

iHeartMedia owns show stoppers including The Breakfast Club, Las Culturistas, Jay Shetty Podcast and Stuff You Should Know. Though the companies haven’t announced specific titles, these are the kinds of conversation-generating, evergreen shows Netflix is after: economical video with strong voices, built-in communities and a consistent stream of production.

If the terms of the Netflix-Spotify deal are a guide, licensed video podcasts on Netflix would leave YouTube but remain among their native audio platforms. For Spotify, shows like the ones you can watch on Netflix are staying partially in place (not everything moved its YouTube game board around like a minted Joe Rogan Experience). Expect iHeartMedia to take a similar, pick-and-choose path to stay clear of blocking its largest distribution funnels.

How Netflix aims to position a rival to counter YouTube

YouTube has emerged as the default platform for video podcasts, passing 1 billion monthly active podcast listeners earlier this year, making it the platform that other inroads must beat for watch time and discovery. By corralling familiar video podcasts into a streaming home, Netflix is casting itself as an alternative place fans can find long-form talk content that entertains them between tentpole releases.

This is also about economics. Video podcasts are a much cheaper production compared with scripted shows, and consistently add to viewing time measurements. For Netflix advertisers, they provide brand-safe adjacency with hosts that already boast a large and committed audience — a value add to the blockbuster inventory offered without inflating production budgets.

Why iHeartMedia matters in Netflix’s podcast strategy

iHeartMedia is an audio powerhouse. Podtrac has for the most part measured iHeartPodcasts as the country’s No. 1 podcast publisher by audience reach, thanks to several hundred shows and a huge terrestrial radio footprint that aids in providing cross-promotion. That scale, plus a mature ad-sales engine, should make iHeart an appealing partner for a streamer looking for reliable volume and proven formats.

For creators under iHeart’s ever-expanding umbrella, a Netflix window provides yet another surface for discovery and potential premium presentation, while iHeart can use the streamer’s global presence to expand video audiences beyond the boundaries of YouTube’s algorithm. The tradeoff is platform fragmentation — some viewers will follow and some might default to whatever the most convenient platform happens to be — but the deal structure around clips, highlights and archive episodes will matter.

How it aligns with Netflix’s broader content strategy

Netflix has been increasingly layering in unscripted and live-adjacent experiences, and its ad-supported tier creates the urgency to build habitual, inventory-heavy programming on staff. At its upfront presentations, the company said it had 40 million monthly active users for the ads plan — which suggests a hunger for high-frequency content that keeps viewers coming back and that allows advertisers to achieve more consistent reach.

Video podcasts that are licensed tick those boxes. They provide support in sports, culture, lifestyle and true crime verticals where Netflix already has a footing, and they also form cross-promotional roads leading from watch-together documentaries to weekly talk shows. That Spotify deal established the template: focus on known brands, police video exclusivity and allow audio ecosystems to stand wherever one can.

Competitive Signals From Audio Platforms

The larger market is moving towards platform-owned video distribution. Spotify last noted it now offers over half a million video podcasts and that almost 400M people have watched its videos on the service, demonstrating there’s a sizeable audience of those who are willing to watch their podcasts outside of YouTube. In the meantime, advertisers continue to pour money into podcasting; more than $2 billion in 2023 forecasted by the IAB’s U.S. Podcast Advertising Revenue report with growth projections accelerating for mid-decade.

Against that backdrop, Netflix’s foray is less a pivot and more an expansion: a play to grab some of the action in a fast-growing, personality-driven category while building on its recommendation engine and global scale.

What to watch next as Netflix and iHeartMedia talks progress

Among the variables:

• Which shows are covered
• Whether Netflix gets global rights on certain series
• How soon those back catalogs migrate to the streamer
• What guardrails exist around clips and social distribution
• Production enhancements financed by Netflix
• Release schedules customized for streaming
• Whether the company ultimately places orders for original video podcast programming

If the talks do close, Netflix would get a reliable new pipeline of low-lift, high-listen programming to add to its marquee slate — while iHeartMedia could develop a potent new distribution lane for video that’s becoming more and more central to podcast growth.