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Forget fighting for eyeballs. The competition for ear time has become the growth opportunity in the digital media landscape.
Podcasts reach 104 million Americans every month, according to an Edison Research report released in March 2020. Awareness only continues to blossom. Seventy-five percent of Americans over the age of 12 are familiar with podcasting, up from 70% in 2019, according to Edison.
Podz, an app that launches Wednesday, hopes to be a highly curated and personalized feed for listeners to discover podcasts. By analyzing hobbies and interests, the company uses machine learning to create a digest with the most compelling 60-second sound bite for each listener, combining them into an experience that’s a “perfect blend of fast-moving social media and thoughtful audio commentary,” according to the company. If intrigued by a highlight, listeners can choose to play the episode in its entirety.
“Podcasts are largely siloed. There’s no rising tide to lift all ships for audio creators, yet they’re way more interesting than the average Instagrammer. We want to help creators get more listenership,” Founder and CEO Doug Imbruce told Yahoo Finance in an exclusive interview.
Audio programming has been having a multi-year moment, with tech companies investing heavily in the space. Amazon (AMZN) acquired podcast publisher Wondery in December. In September, Apple (AAPL) acquired Scout.fm, which creates personalized podcast stations.
The player to beat
Still, Spotify (SPOT) is the player to beat. Spotify converted more than 20% of its 320 million music users into podcast listeners, Bloomberg reported last month. The streaming service had a purchasing spree, swooping up companies that specialize in all facets of the podcasting business. The company now owns Gimlet Media, The Ringer, Megaphone, Anchor and Parcast, and has struck deals with high-profile names like Joe Rogan, The Obamas, Brené Brown, and Prince Harry and Meghan Markle, among others.
Imbruce says his mission is to be a neutral place where all creators want to come. Currently, the company doesn’t have any platform exclusives available.
As podcasts continue to take up more and more ear time, new audio-only social network Clubhouse has also been encroaching on the space. A forum where anyone can start a conversation, it’s been likened to a place where interactive podcasts can take place.
“We’ve obviously spent a lot of time thinking about it. We just have to celebrate any innovation in audio. It opens up more opportunities. We want to elevate the most appealing fundamental behavior that audio unlocks — collaboration,” he said.