Netflix, Spotify Agree to Major Video Podcast Deal

Two of the largest streaming services in all of entertainment are teaming up.

According to the Hollywood Reporter, Netflix and Spotify have agreed to a new partnership that will allow customers to stream select video podcasts from the comfort of their televisions.

Spotify has been a giant in the podcasting space, and it's looking to expand its reach to video while rivaling YouTube.

Some of the first podcasts available on Netflix will be Spotify Studios productions like "The Bill Simmons Podcast," "The Rewatchables" and "Conspiracy Theories." Viewers will be able to tune in to the podcasts in January, and more shows will be available as the partnership between the services expands and continues.

Netflix and Spotify Address the Competition

“At Netflix, we’re always looking for new ways to entertain our members, wherever and however they want to watch,” says Lauren Smith, Netflix's vice president of content licensing and programming strategy.

“With video podcasts on the rise, our partnership with Spotify ensures we bring the full video versions of these top shows to Netflix and Spotify."

Smith says the "curated" selection of podcasts on offer with the initial launch "adds fresh voices and new perspectives to Netflix, making our entertainment lineup more exciting than ever."

According to research conducted by the Edison Group, YouTube is the preferred platform for podcast consumption in the United States. 31% of podcast listeners surveyed chose YouTube as their preferred service. Spotify was a close second at 27%, and Apple Podcasts a distant third at 15%.

The popularity of YouTube - and by extension the video podcast itself - seems to be aligned with a few factors. Research also shows that Gen Z listeners prefer to consume video podcasts if given the option, with 84% of monthly listeners in the demographic having that preference.

YouTube also has a lower barrier of entry than other platforms, especially for younger viewers or listeners. The service is free to access with ads, and blends in seamlessly with other forms of entertainment.

By blending the audiences of Spotify and Netflix, the two streaming services are looking to cut into YouTube's dominance in the space.

What Podcast Genres Will Be Available?

Nine sports shows will be available at launch to stream on Netflix, including The Ringer NBA, NFL and F1 podcasts.

Five pop culture podcasts will be added, including "The Big Picture," a popular show about movies around award season. Finally, the "Serial Killers" podcast will be added in the true crime category, along with "Conspiracy Theories."

True crime and documentaries that chronicle real-life cases are extremely popular on Netflix, and these podcasts could be ways to grow that audience on the platform.

We'll see what other podcasts Spotify and Netflix add down the line as they continue to focus on visual experiences.