Podcasting market is estimated to witness high growth, owing to rising popularity of on-demand audio streaming & growing youth interest in audio content
Global podcasting market is estimated to be valued at US$ 25.62 Bn in 2024, exhibiting a CAGR of 26.8% over the forecast period 2024-2031. Growing popularity of short-form podcasts and increasing investments in podcast platforms & networks can drive the market growth.
Market Dynamics:
Rising popularity of on-demand audio streaming: Increasing availability of podcasts across various streaming platforms such as Spotify, Apple Podcast, and Google Podcast has made podcasts highly accessible globally. This ease of access has encouraged listeners to switch from linear programming to on-demand content consumption, thus, driving the market growth.
Growing youth interest in audio content: Younger generations are highly mobile and connected. These prefer consuming content on- the- go through their portable devices such as smartphones. Podcasts perfectly match their convenience-driven consumption habits of listening to entertaining, informative, and thought-provoking content while commuting, exercising, or relaxing. This rising interest of youth in audio content can drive the podcasting market growth during the forecast period.
Growing interest in on-demand audio content
Global podcasting market growth is driven by rising interest among consumers in on-demand audio content. Podcasting allows listeners to access a huge variety of audio shows and programs on-demand which these people can listen to anywhere and at any time on their smartphones, tablets or other connected devices. This portable and flexible format appeals to many people in this fast-paced world where people want entertainment options that can be consumed while on- the- go. Podcast listenership has steadily increased in recent years as the availability of podcasts covering diverse topics has expanded. Content creators are also increasingly producing podcasts, and this further adds to the variety and choices available to listeners.
Increasing adoption of smart speakers
Global podcasting market growth is driven by rapid adoption of smart speakers. Smart speakers powered by virtual assistants like Alexa and Google Assistant have opened up new avenues for podcast discovery and consumption. Users can simply ask their smart speakers to play specific podcasts or genres which get streamed directly. Smart speakers have made accessing podcasts effortless even for those unfamiliar with the format. These have brought podcasts to new demographics like families and older listeners who may not be tech-savvy. Companies are actively working on enhancing the podcast experience on smart speakers to make recommendations and discovery seamless. This can attract greater listenership to podcasts and drive the market growth.
Limited monetization options
Global podcasting market growth can be hampered by relatively limited options currently available for monetizing podcasts effectively. Unlike other digital media like video, podcasts have not yet found sustainable monetization models at scale. Advertising and sponsorships account for the bulk of podcast revenue but the rates are often quite low. Other monetization models like subscriptions and one-time payments have not taken off widely. This poses challenges for content creators to generate steady and lucrative revenue streams from podcasts. Unless viable and scalable monetization solutions are identified, it may discourage new entrants and stall the growth of professional, high-quality podcast content overall.
Technology barriers limit wider listenership
Podcast listenership is constrained by certain technology barriers. While the market has expanded, podcast reach is still relatively niche as compared to mass media. Not all users are familiar with how to find, subscribe and listen to podcasts. Connectivity and data limitations in some regions also impact accessibility. Device fragmentation, between iOS, Android and other platforms, leads to inconsistent podcast apps and experiences. Overcoming such technology adoption hurdles is vital to unlock the true potential of the podcasting audience and support further revenue opportunities across a larger listener base. Standardization efforts are needed to simplify the podcast experience.
Growing popularity of smart speakers
Rising popularity of smart speakers can offer new market growth opportunities. Smart speakers have provided podcasts easier accessibility and brought new listeners. Companies can capitalize on this by optimizing for voice platforms and exploring innovative techniques of podcast discovery, recommendations and monetization tailored for smart speaker interactions. Content creators also have a chance to produce short-form, snackable podcasts targeting smart speaker listeners with busier lives. The growth of voice assistants drives new engagement and monetization options that can sustain higher revenues industry-wide.
Opportunity to expand into international markets
Expanding podcast availability and custom local content across international markets can offer market growth opportunities. Podcast listenership remains heavily concentrated in a few key regions like North America and Western Europe. However, developing markets in Asia Pacific, Latin America, Middle East and Africa are rapidly digitizing with rising smartphone and internet access. Global companies and local players should look at dubbing or producing content in local languages to better serve these new audiences. Entering diverse international markets early will position leaders well to tap into the huge latent potential as podcast adoption increases globally in the near future.
Link: https://www.coherentmarketinsights.com/market-insight/podcasting-market-4283
Key Developments:
- In September 2023, Spotify, a Swedish audio streaming and media service provider introduced a revolutionary voice translation feature, furthering its efforts to elevate the podcasting experience. Utilizing cutting-edge AI technology, this innovative solution allows podcast episodes to be translated into various languages while maintaining the original podcaster's voice, thus, increasing global accessibility and expanding Spotify's audio offerings.
- In August 2023, Podbean, a podcast hosting and monetization platform launched its highly anticipated integration with Apple Podcasts' subscription service. This integration enables podcasters to monetize their content and expand their audience reach by providing a seamless experience for both creators and listeners, thus, enhancing the overall podcasting ecosystem.
- In September 2022, iHeartMedia, Inc., an American mass media corporation that specializes in radio broadcasting, podcasting, digital and live events and Interval Presents, a podcast network owned by Warner Music Group, formed a multi-year partnership to co-produce a diverse array of podcasts. As per this agreement, the two companies will jointly create a series of shows, including limited-run series and ongoing weekly podcasts, further expanding their collective offerings in the podcasting space.
- In May 2022, SoundCloud Limited, a major global audio streaming platform bolstered its music and entertainment discovery capabilities by acquiring Musiio, a pioneering artificial intelligence (AI) music curation company. This strategic move enhanced SoundCloud's music discovery feature, empowering users to effortlessly find and explore new music in a more efficient and effective manner.
- In May 2022, Spotify announced its plans to translate podcasts into multiple languages, a strategic move to cater to a wider global audience. The company recognized that certain podcast genres, such as crime stories and daily horoscopes, have the potential to resonate with listeners worldwide. By offering translated versions of these shows, Spotify aims to make its podcast content more accessible and appealing to a diverse international audience, further expanding the reach and impact of its audio offerings.
- In February 2021, Spotify strengthened its podcasting advertising capabilities by acquiring Megaphone, a leading podcast hosting and advertising company. This strategic acquisition was aimed at empowering advertisers to target specific audiences more effectively, ultimately enhancing the overall advertising experience on Spotify's platform and driving greater value for both advertisers and listeners.
Key Players:
Acast, Amazon.com, Inc., Alphabet Inc., Apple Inc., Audioboom Group Plc, Automattic Inc, Audacy Inc., iHeartMedia Inc., Megaphone LLC, Pandora Media, LLC, SoundCloud Limited, Spotify AB, Stitcher, TuneIn, Inc.
