Amazon Music to buy podcast company Wondery, taking fight to Spotify

Spotify has position the model of song streaming platforms procuring podcast companies in the previous two years, spending a total of over $600m to snap up the likes of Gimlet, Parcast, The Ringer and Anchor FM.

Now some other song streaming heavyweight has moved into this territory, with a headline-grabbing buyout.

Amazon Tune has this day (December 30) announced that it has signed an agreement to worth Los Angeles-basically based Wondery, which makes and produces smartly-known podcasts collectively with Soiled John, Dr. Loss of life, Switch Wars, and The Shrink Subsequent Door.

The announcement confirms a rumor published in the Wall Highway Journal earlier this month, which suggested Amazon used to be position to worth Wondery at a valuation for the podcast agency of over $300m.

The WSJ known as Wondery “the final fats, self sustaining podcaster on the market”, citing a source who suggested the podcast firm used to be on route for annual revenues of over $40m in 2020.

Round 75% of that income would come from promoting, mentioned the WSJ, with the comfort coming from other sources collectively with the licensing of Wondery’s properties to TV. (Soiled John, to illustrate, launched as a widespread scripted drama sequence on Bravo in the US in 2018, and Netflix worldwide in 2019.)

Other sources of profits at Wondery consist of licensing its squawk material to subscription audio services, collectively with Amazon’s dangle Audible, plus cash from Wondery’s dangle top class subscription provider which launched this summer season.

Wondery used to be launched in 2016 by its CEO (and outdated-long-established Fox executive) Hernan Lopez, and raised $15m in investment capital across two fundraising rounds in 2018 and 2019.

“This is a pivotal second to amplify the Amazon Tune offering beyond song as listener habits evolve.”

Amazon Tune announcement

A important aspect-train for the song commerce: In April final One year, Wondery and Universal Tune Team inked a deal that enabled Wondery to make expend of UMG’s song catalog and develop podcasts in accordance with the legend of UMG artists.

Amazon’s acquisition isn’t but closed – it would deserve to plod the same outdated regulatory hurdles – however, with Wondery in its ranks, Amazon Tune says it would “be ready to present powerful extra excessive-advantageous, modern squawk material and proceed [our] mission of bringing a global of entertainment and files to their audiences, wherever they hear”.

Amazon Tune, which launched podcasts on its platform in September, known as its Wondery acquisition “a pivotal second to amplify the Amazon Tune offering beyond song as listener habits evolve”.

It added: “Our commitment to podcasts, our give consideration to excessive advantageous audio with the Amazon Tune HD tier, and our contemporary partnership with Twitch to enlighten stay streaming into the app, procedure Amazon Tune a premiere [sic] destination for creators.

“Along with Wondery, we’ll proceed to enlighten extra potentialities to streaming as we amplify preference and procedure obvious we’re a destination for our potentialities to search out, peek, and hear to the creators and artists they revel in.”

Amazon further clarified: “When the deal closes, nothing will commerce for listeners, and they’ll proceed to be ready to fetch entry to Wondery podcasts by a diversity of services.”

Within the meantime, a Spotify user behold held in November suggested that Daniel Ek’s firm is mulling the premise of launching a podcast-utterly subscription tier.

The behold asked SPOT users to reply to the possibility of four doubtless top class podcast tiers, each and every carrying a month-to-month worth ranging from $2.99 to $7.99Tune Switch Worldwide

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