Welcome to Hot Pod, a newsletter about podcasts. This is issue 135, published September 5, 2017.

Programming note! Ah yes, so we are in September! As you might already know, I’m taking a five-issue break from writing Hot Pod, starting next week and back on October 17, to do the Knight Visiting Nieman Fellowship in Cambridge (very on-brand, I’d say). But that doesn’t necessarily mean the Hot Pod #content will stop flowing, as I’ll be serving up bonus goodies here and there to those who read Hot Pod as a newsletter. (You can sign up to that here.)

But even as the newsletter churns out extra, the Hot Pod column as you know it will be on ice for a while. So, before the break and ahead of the third annual IAB Podcast Upfront happening later this week (also the NowHearThis Festival, I suppose), I figured this is probably a good time to take stock of the year in podcasting so far, which is, you know, quite a lot. In this issue, you’ll find top-level numbers, the six big things/trends/developments that stood out to me, thoughts about the three most interesting podcast companies, and some news hits before we break for a month and a half.

Let’s jump in.

The year so far. We begin by asking: Just how much has the industry grown over the past year? And do we have a better understanding of the space than we did before? I’ve been keeping these two digits pinned to my notebook:

• Audience size: 67 million U.S. monthly listeners, according to Edison and Triton Digital’s annual Infinite Dial report, up 21 percent from 57 million from the year before. The volume of growth between 2017 and 2016 is slightly less than the period immediately preceding it (4 percentage points off a smaller base), which was a source of consternation among some in the podcast community at the time. But as I wrote back when the report first dropped: “We’re still talking 10 million new Americans actively listening to a medium that (a) is still propped up by a barely evolved technological infrastructure, (b) has only seen a few instances of significant capital investment, and (c) still sees its industry power very much under-organized.” Those three things, by the way, have changed a little since I wrote that line. More on that in a bit.
• Advertising: The industry is expected to top $220 million in podcast advertising revenue by the end of 2017, according to an Interactive Advertising Bureau (IAB) study. The study is the first of its kind, a long-awaited official research effort into a pool of the biggest players in the space — which gives us a floor, at the very least — that’s a marked a step up from that methodologically-fuzzy Bridge Ratings report that’s been floating about the past few years. (Yeah, it’s all totally weird.) The IAB study was also able to give us some valuable historical context: 2016’s podcast ad revenue came in at $119 million, while 2015 came in at $69 million.

I’ll be thinking about how the industry moves forward based on three dimensions:

• Growth — whether audiences and revenues will continue to grow, obviously;
• Sustainability — whether companies will meaningfully diversify their revenue streams and whether the industry will see its activities and fortunes spread out across a wide number of companies; and
• Refinement — whether the ecosystem will improve upon its various inefficiencies, from discovery to measurement to monetization.

Cool. So, with all that out of the way, let’s talk about six big things that’ve stood out to me since January.

(1) Fundraising uptick. The summer closed with what might have been the loudest month in terms of significant investments in the podcast industry since…well, since I’ve started writing this newsletter in November 2014. August saw a total of four big investments in all (that were publicly disclosed, of course):

• August 1: Gimlet Media announced a $15 million Series B funding round led by the New York-based Stripes Group, whose portfolio also includes Refinery29, eMarketer, and Blue Apron. Participants in the round also included Laurene Powell Jobs’ Emerson Collective, Graham Holdings, Cross Culture Ventures, and Betaworks. Variety had the first writeup.

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• August 3: DGital Media (which would later rebrand as Cadence13) announced that Entercom, the fourth-largest radio broadcaster in the U.S., paid $9.7 million to buy 45 percent of the company. The arrangement was described as an “investment and a strategic partnership” in the press release, and Entercom also signed a “multi-year services agreement under which DGital will dedicate ‘significant resources’ to create on-demand audio content leveraging the broadcaster’s roster of local talent and relationships.”
• August 23: Art19, the California-based podcast technology company, announced a $7.5 million Series A round led by Bertelsmann Digital Media Investments (BDMI) and DCM Ventures. Other investors in the round included United Talent Agency (!), Gallo Digital, angel investor Zach Coelius, and Array Ventures, according to the press release.

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• August 31: HowStuffWorks, the Atlanta-based veteran podcast company that’s been publishing for almost a decade across multiple parent corporations, announced that it will be spinning out as a new independent company with a $15 million Series A fund led by the Raine Group. Here’s TechCrunch with a writeup, which also includes a look at an executive reshuffle and marginal insight into expansion plans. The spinoff news comes not too long after the company announced a West Coast expansion, one that explicitly targets the comedy category.

First of all, mazel tov to all! But also: Why did all these investments come in at the same month? Also, why did it all come out in the time of year when many a venture capitalist is thought to be on vacation? Conal Byrne, HowStuffWork’s new incoming president, was game to put a positive spin on it, though he doesn’t quite answer the question. “The industry has finally hit the tipping point that investors have been waiting for,” he wrote, through a rep. “Validation of a big market opportunity.” That feeling is generally shared across other sources that I reached out to, though the timing thing remains a puzzle. (Herd mentality? An actual tipping point? Maybe a bit of both?) Nevertheless, there were several private expressions of relief that dollars are finally flowing.

One thing to observe from all this: These four investments are substantially different from the kinds of investments we’ve often seen in (and adjacent to) the podcast space up until this point. Much of the attention over the past few years has generally been on consumer-focused audio app and platform plays — Anchor, Bumpers, Otto Radio, 60dB, RadioPublic, and so on — which are, in other words, stuff that’s more conventionally known within the broader tech industry. But these recent investments — three straight-up media companies, one podcast technology infrastructure company — are specific to the needs, textures, and idiosyncrasies of the podcast ecosystem.

I like where this is going.

(2) Apple analytics. While the summer closed out with news of investments, the season kicked off with an Apple bombshell. During its WWDC conference back in June, the company’s podcast team announced that publishers will soon be provided with in-episode analytics — which is to say, publishers will soon be able to systematically go beyond the download and tell just how much of their episodes are actually being listened to on the aggregate. This is undeniably the most significant development to hit the podcast industry since…well, since Apple consolidated the disparate ecosystem by featuring podcasts in the iTunes architecture, breaking it out as a standalone app, and then eventually packaging the app with iOS by default.

My coverage on the matter was spread across three separate issues:

• A broad rundown in the June 13 edition;
• Reactions from various players and executives throughout the industry in the June 20 edition; and
• An independent’s perspective on how the indie/smaller publisher might be affected by these changes in the June 27 edition.

Nieman Lab also ran a useful piece from WAMU’s Gabe Bullard, who sought to project what might happen to podcasts by examining what happened to the radio industry when its ratings became more precise ten years ago. To sum: A fragmented world was revealed, genres died off, accuracy disputes emerged, and some who were thought to be big turned out not to be all that big after all. We’ll likely see the same kinds of effects ripple across the podcast industry, and as a result, we’ll probably see some recalibration of power and standing. We’re due for a moment of disruption, which is as much a period of potential as it is pitfall. (Chaos is a ladder, after all, as some dude once said.)

(3) More and more adaptations. To illustrate the prevalence of this trend, here’s a sample of just a few of noteworthy developments in this area over the past few months:

• Gimlet Media articulating its intellectual property pipeline as a prominent talking point for press coverage around its recent fundraise, building on a steadily increasing track record of adaptations that include Homecoming and StartUp being adapted for television, along with the “Man of the People” episode on Reply All being adapted for film.
• In August, HBO announced that it will be adapting WNYC’s 2 Dope Queens into a series of four hour-long specials.
• Also in August, Universal Cable Productions announced that it was adapting Night Vale Presents’ Alice Isn’t Dead for the USA Network. Accompanying the news was word of a novel based on the podcast, to be published by Harper Perennial in 2018.
• The TV adaptation of Aaron Mahnke’s Lore, picked up by Amazon Studios, has an October release date and now, a trailer. A book adaptation is also in the works.
• There remains scuttlebutt that First Look Media was shopping Missing Richard Simmons around as “potential source material for a TV series,” per a Hollywood Reporter article from April.

The prospect of adaptation is valuable for publishers in three key ways: (1) obviously, it represents a whole new potential revenue stream, (2) they’re good expressions of recognition by more established systems of media and publishing, and (3) each successfully executed adaptation is an audience development and marketing vessel for the original podcast as much as it is a standalone product.

That said, some attention should be paid as to whether these adaptations actually pay off. Remember, it took a while for comic books to rev up as hot sources of intellectual property for the more lucrative film industry, especially after an uneven string of performances in the ’90s and early 2000s. (But then again, the film industry did have a…challenging summer. But maybe that doesn’t really tell us anything?)

(4) On programming. It’s been kind of a strange year, at least for me. We’ve seen a heckuva lot more podcasts of increasing ambition, and we’ve seen some tremendous successes that have taken the medium to new heights. But I can’t seem to shake the feeling that the pace of successes has been somewhat uneven. Like there isn’t much certainty that the space as a whole can hold the public conversation for a sustained period of time.

In any case, the year in #content so far has been defined in my mind by two things:

• Two unambiguous hits from early in the year that broke into the mainstream, First Look Media’s Missing Richard Simmons (debuted in February) and Serial Productions’ S-Town (debuted in March).
• The rise of the daily news podcast, about which I’ve written a frightful amount over the past few months. But frankly, between The New York Times’ The Daily (debuted in February) and NPR’s Up First (debuted in April), I think it’s the most exciting front in the space in a long time. The category represents a whole bunch of things: Innovation! Ambition! Serious consideration of the medium that breaks from podcasting’s still governing skeuomorphisms with radio! And with Vox Media throwing its hat into the ring soon, I’m excited to see how the genre continues to heat up.

Two questions moving forward: (a) Where will the next hit come from? (b) Does my thesis from May — where I argued that the success of Missing Richard Simmons, taken in context of the success of S-Town, indicates that podcasting remains fairly accessible and meritocratic, which is to say that a good thing can stand out no matter of pedigree — still stand?

(5) More and more windowing. There’s been a noticeable increase in such shenanigans between publishers and non-Apple platforms, particularly in terms of promotional partnerships that sees the former giving “exclusive early drop” opportunities to the latter. Examples include:

• First Look Media’s Missing Richard Simmons releasing episodes early (along with some bonus material) on Midroll Media’s Stitcher platform. Of course, that flow was ultimately interrupted due to some, uh, “extraneous circumstances” related to the meta-elements of the podcast by the end of the show’s run, but I heard the experiment paid off quite a bit for Stitcher. A Midroll rep told me that the partnership drove six times the usual number of daily new subscription signups during the show’s run.
• Gimlet Media debuted its collaboration with the Loud Speakers Network, Mogul, on Spotify weeks before the podcast would eventually be distributed through the open ecosystem. The Brooklyn-based company later announced that its upcoming history podcast, Uncivil, will be windowed on TuneIn.
• Speaking of TuneIn, the platform had previously tested out an exclusive distribution arrangement with The Ringer’s MLB Show at the start of baseball season.
• And speaking of Spotify, the music streaming platform also developed a windowing relationship with WNYC, where the public radio station debuted the latest season of 2 Dope Queens earlier on Spotify.

Aside from Stitcher, it’s unclear to me whether such arrangements are paying off enough to establish this as a worthwhile strategy to be commonly implemented across the space. What is clear, however, is that such moves have not gone unnoticed by Apple, the long-time steward of the space.

And there were hints of blowback from Cupertino. As Digiday reported during the Missing Richard Simmons run:

According to multiple people familiar with the matter, Apple was excited about promoting Missing Richard Simmons until it heard about the windowing strategy. They subsequently abandoned all the marketing plans for the show, those people said.

Awkward! Also, perturbing.

(6) Platform fluidity. Last March, reacting to the launch of Audible’s original programming slate, the introduction of Google Play Music’s podcast feature, and the continued rollout of Spotify’s video and podcast offerings, I argued that the word “podcast” will lose all of its original meaning by the end of that year. Which is to say, the concept will no longer be too tethered to its initial infrastructural connotations — RSS feeds, podcatchers, and so on — and that arguments over what’s a “podcast” and what’s not will be fully relegated into a game of pure semantics and ideological identities. Instead, the way we talk about all of this — the content, the technology, the audiences — will have shifted from a narrative about the clash between an incumbent and an insurgent (“the future of radio”) towards a clash between publishing factions defined by different formations of publishing communities (“a type/genre/kind of audio”).

(Man, I was so much less literal back then.)

I think there’s been a fair bit of evidence that precisely this has played out over the intervening year and a half, contributing to a space that feels a lot more…fluid, conceptually, than it once was.

Consider the following developments:

• Spotify is producing original podcasts in addition to their overarching efforts to establish their platform as a meaningful alternative to Apple. (Or, internally, to establish podcasts as a meaningful addition to their raison d’etre of being a music consumption platform.) The company seems to be getting ready for another round of original podcast programming, according to Bloomberg, though it’s unclear how that’s been affected by the dismissal of Tom Calderone, its head of video and podcasting operations.
• Audible and Stitcher Premium, both of which possess value propositions that are defined by a sense of exclusivity, have begun trickling shows out beyond their paywalls and into the open ecosystem.
• Meanwhile, Google Play Music is making its own quiet excursion into original podcast programming.
• iHeartRadio, a native of Internet radio (and progeny of old radio), is increasingly agitating to claim some portion of the podcast space. In the past year, the platform has established distribution relationships with Art19, Libsyn, and NPR member stations. It, too, dabbles with some original programming, branded and otherwise.
• SiriusXM is quietly developing a podcast platform of their own by the name of Spoke.

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• And while we’re on the subject of apps, we’ve also seen increasing activity within the social audio app front. In particular, the Betaworks-backed Anchor — a contemporary of Bumpers — is increasingly deploying podcast nomenclature (and getting involved in the concerns of podcasts writ large) to describe itself, its machinations, and by extension, its value proposition. A prime example of this can be found in its latest audio-to-social video feature, which adapts the broader Audiogram initiative into its infrastructure.

One way to thread all of these developments together is to frame it all as the story of several non-Apple platforms slowly (and clumsily) encroaching on Apple’s position as a steward of the space with a relatively hands-off stance, maybe to one day capitalize on the various inefficiencies that have resulted from that stance.

Have we seen a meaningful alternative platform to Apple yet? It doesn’t seem like it, based on what I’ve seen. As it stands, Apple remains the primary firehose, and everyone else is still a tiny spigot by comparison. Nevertheless, the encroachment marches on.

(A quick side thought on the fate of user generated content-oriented apps: While it’s unclear what their precise value propositions are to bigger publishers, you could argue that they could collectively serve as a good next step for the species of smaller solo independent publishers that find themselves being pushed out by bigger, more organized, and typically moneyed publishers. I haven’t really thought this through just yet, but should Apple change its hands-off stance — and should Apple Podcasts’ facilitation of the space be diluted beyond some proportional tipping point — small and upstart creators would need a place to go.)

So those are the six trends that’ve stood out to me. As a collective, I think they describe a space that has made meaningful gains where it counts (size, revenue, legitimacy, prestige, awareness, and so on), but as a result has become increasingly complex. That complexity can be destabilizing, and this story has a bigger potential curveball coming its way with the introduction of the new analytics layer in November. Rest assured: I’ll be back by then to cover all of that.

Before I move on to some quick news hits, I also want to quickly talk about the three companies in the industry that have most stood out to me over the past eight months. They aren’t necessarily the most successful or the biggest — though they are quite successful and big — but rather, they’re the most interesting, and they’ve been the most fun to think and/or talk about.

The three most interesting podcast companies

HowStuffWorks. HWS is officially almost two decades old; its podcast business, headlined by Stuff You Should Know, is about half that. And yet the Atlanta-based company has, over the past year, operated with a verve of a much younger venture. It has aggressively hired new talent (working from a playbook that seems to be revolved around drafting established Internet media pioneers from the mid-aughts, including Cracked.com founder Jack O’Brien and Mental Floss’ Will Pearson and Mangesh Hattikudur), expanded the geography of its operations, and spun out as a whole new independent entity with new funds. Can an older hand successfully retool itself for the future?

The Ringer. I happen to love The Ringer as a publication, but I also think the stuff that they’re doing with their podcast network is low-key revolutionary. It features rigorous experimentation (Binge Mode, of all things, is a triumph in concept and execution), a fluid use of their writers as valuable audio assets, and an approach that seems to have meaningfully integrated their audio division with the rest of the business. The Ringer isn’t for everybody, but when it’s yours, it’s really, really yours, and its podcast division is the purest expression of that fact.

That said, the fact that its ownership structure is a mystery makes the enterprise tricky to fully trust. We can’t quite know for sure how the company is doing, and as a result, we can’t assess for sure whether the model is financially successful — and therefore replicable — or not. Then again, The Ringer head Bill Simmons told Recode’s Peter Kafka back in February that they’re doing well, and the organization seems to be valuable enough for Vox Media to establish a technology and advertising relationship with in May, so hey, maybe something’s there.

The New York Times. When the Gray Lady originally announced that it was assembling a new podcast team last year, I imagined an outcome not unlike what we’ve seen with, say, Slate: a portfolio of subject-specific shows that export the feel and sensibility of its parent publisher, only tighter and more pristine. What ended up emerging was something more drastic, the creation of a whole new…let’s call it a franchise. (Or, heaven forbid, a #brand.) By the end of summer 2017, it’s not inaccurate to say as far as the Times’ audio machinations are concerned, you have The Daily, and you have everything else that orbits The Daily.

On the one hand, this is incredibly exciting. That team has built a powerful machine, one that has equal capacity to break stories, deepen impact, and serve as a platform to launch complementary projects. But on the other hand, the problem with building a basketball team around a single player is the implosion that happens when that player gets injured, gets tangled up in controversy, or just gets old. This is a privileged problem, of course, but it’s a problem nonetheless. What happens next will be fascinating to watch.

Two stories on political podcasts.

(1) The genre is strong! Which is not entirely surprising, of course, given the current spirit of the times where politics and the media have definitively fused into one giant, amorphous, Jeff Goldblum-in-The Fly-like blob. The Hollywood Reporter’s Jeremy Barr (formerly of Ad Age) has a piece up checking in on the growing category, and it contains two nifty data points for us: First, that the twelve-year-old Slate Political Gabfest “brought in about $1 million in revenue last year at a $25 CPM and an average download of a few hundred thousand per episode,” and second, that revenue for the political podcasts in Midroll Media’s portfolio “has doubled this year compared to 2016.”

(2) Vice News is the latest media org to engage with the “podcasts as left-wing political talk radio” angle, providing a broad accounting of the emerging phenomenon. Do pair that with the “alternative left wing media infrastructure” by The Atlantic’s McKay Coppins from July, titled “How the Left Lost Its Mind.”

Kids podcasts make a marketing push. Drawing some inspiration from February’s #TryPod audience building campaign, a coalition of kids-oriented podcasts are attempting a similar cross-promotion scheme to spread their audiences around and generally bring more attention to the category. Participating shows include Brains On (APM), Wow in the World (NPR), Eleanor Amplified (WHYY), But Why (Vermont Public Radio), Tumble Science (Wondery), Circle Round (WBUR), Story Pirates, and The Longest Shortest Time (Stitcher).

I’m told that the coalition was formed organically, with NPR running point on the outreach to potential participants. This campaign is said not to be directly related to the Kids Listen collective, of which all of these podcasts are members.

As part of the effort, Brain On’s Molly Bloom will be producing a “bonus preview” episode that will feature highlights from participating shows. The preview will be distributed throughout the coalition’s podcast feeds in early October.

The campaign kicked off yesterday, and will run for 13 weeks.

Bites:

• BlogTalkRadio and Spreaker have announced a merger. Note: “Shareholders from each of Spreaker and BlogTalkRadio will be making investments in support of the combined company’s growth plan, which will be rolled out over the next several months,” the press release states. Terms were not disclosed. (Press release)
• Ben Johnson, host of APM’s Marketplace Tech and Codebreaker, is moving to WBUR to start a new project on “the vast/complex/rich community of the Interwebs.” Congrats on the move! (Twitter)
• This is cool: “Welcome to Night Vale’s Cecil Baldwin on Finding the Queerness in His Character.” (Slate)
• KCRW is ending the broadcast run of its weekday talk show, “To The Point,” and will repackage it as a weekly podcast. Anomaly or trend? Let’s hope that we stick around long enough to find out. (Current)
• Frontline, the investigative documentary series from PBS and WGBH, is rolling out a podcast with the legendary Jay Allison serving as senior editor and creative director. PRX serves as distributor. The show officially launches on September 14.
• Now, I don’t usually derive much value from content marketing pieces, but this audioBoom writeup sees the digital advertising agency Ad Results claiming to “own” 40 percent of the podcast industry’s revenues. This isn’t too far-fetched, from what I’ve heard. (audioBoom)
• Keep an eye on this: “Traditional Radio Faces a Grim Future, New Study Says.” (Variety)

Cool! Thanks for reading. See you in six weeks.