Amazon Wondery

Photo Credit: Amazon

Amazon is set to combine its Wondery podcast network with Audible in a new restructure that will also see 110 Wondery staff laid off. The move signals a significant shift in Amazon’s podcast strategy—with podcasts rolled into its Audible offering.

Amazon’s acquisition of the Wondery podcast network in late 2020 was a landmark deal. The company spent $300 million to bring the podcast network under its wing for a major push into podcasting and to rival Spotify’s growth. Wondery rapidly became a recognized name in podcasting, hosting numerous popular shows and expanding Amazon’s reach within audio entertainment spaces.

Podcasts were a fast-growing market in 2020, promising new revenue streams for music and tech companies. Now five years on, the landscape is changing as consumption habits point to consumers who prefer the video podcast format—where the host and guests interface with a visual component.

“The podcast landscape has evolved significantly over the past few years,” Amazon VP Steve Boom writes in a memo to staff explaining the consolidation. “The rise of video has also blurred the lines on what it means to be a podcast creator.”

YouTube has become the leading destination for podcasts thanks to its dominant video presence. The move also caught Spotify off guard, with the audio giant working overtime to bring a video component to its platform in response. Audio-only services have struggled to maintain the lead they once enjoyed, leading companies like Amazon to re-evaluate their investments.

“As more listeners look to services that enable both audio and video consumption, we are unifying our podcast investments so that we can deliver the best possible experience for creators and fans,” said an Amazon spokesperson about the realignment. Amazon will continue to support Wondery’s content, which will now be managed under the Audible business. Wondery CEO Jen Sargent’s role with the company was also impacted as part of the shift.