Sign up for our daily briefing
Make your busy days simpler with the Axios AM and PM newsletters. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to the Axios Closer newsletter for insights into the day’s business news and trends and why they matter.
Sign up for Axios Pro Rata
Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with the Axios Sports newsletter. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with the Axios Des Moines newsletter.
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with the Axios Tampa Bay newsletter.
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Want a daily digest of the top Nashville news?
Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.
Want a daily digest of the top Columbus news?
Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.
Want a daily digest of the top Dallas news?
Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.
Want a daily digest of the top Austin news?
Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.
Want a daily digest of the top Atlanta news?
Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.
Want a daily digest of the top Philadelphia news?
Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.
Want a daily digest of the top Chicago news?
Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Want a daily digest of the top DC news?
Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.
Illustration: Aïda Amer/Axios
Spotify's $235 million acquisition of podcast monetization company Megaphone on Tuesday is the latest in an acquisition frenzy that's stirring up the podcast industry.
Why it matters: The past year has seen several key companies invest hundreds of millions of dollars in podcast acquisitions, including Spotify, iHeartMedia, Apple, SiriusXM and others.
Driving the news: Spotify's Megaphone deal comes on the heels of an investment spree by its rivals.
- iHeartMedia on Friday said it would acquire the rest of Voxnest, a podcast monetization company. (It owned a minority stake in Voxnest prior to the deal.) On Monday, it announced a partnership with audio production company Pushkin to be its exclusive sales partner for many of its most popular podcasts. (Full disclosure: Axios partners with Pushkin to produce its Axios Today podcast, and also works with Megaphone.)
- SiriusXM's $325 million acquisition of Stitcher closed last month. The deal gave it access to Midroll, a podcast ad company that Stitcher bought in 2015. This summer, the radio giant acquired Simplecast, a podcast management platform that helps podcasters publish, manage and measure their content. It already owns podcast ad company AdsWizz, which it acquired through its purchase of Pandora in 2018.
- Apple earlier this year reportedly acquired Scout FM, a startup that creates radio-like stations for podcasts. While Apple has long been the king of hosting podcasts, it hasn't invested as much in podcast monetization through ads.
Be smart: Companies like Amazon, Google and others have also made moves into podcasting, but so far, they have not seemed as eager to acquire new firms to build their audio empires. That could change in the future.
The big picture: For now, podcasting is a small but growing advertising medium. The industry as a whole still only brings in less than $1 billion in ad revenue, even though more than 90 million people listen to podcasts monthly, per Edison Research.
- But just as Google and Facebook bolstered the digital ad market by aggregating lots of ad tech companies, the same thing is beginning to happen in audio.
- Companies like Spotify, SiriusXM, iHeartMedia and others aim to grow the podcast advertising market by aggregating podcast services together through deals like the ones struck this week and later securing a chunk of the services' revenue for themselves.
What's next: There are still a few independent podcast companies that are likely to get acquired as the podcast industry continues to consolidate.
- Apple and Sony are among two firms that are eyeing an acquisition of the independent podcasting studio Wondery, Bloomberg reports. Sources tell Bloomberg that Wondery is seeking $300 million to $400 million in a possible sale.