Amazon Echo Dot Speaker
CNBC | Richard Washington
Amazon announced on Wednesday that it is acquiring podcasting company Wondery, expanding its catalog of original audio content.
As part of the deal, Wondery will join Amazon Music, the e-commerce giant’s music streaming business. In September, Amazon Music added podcasts to its platform, seeking to capture a slice of the increasingly competitive podcasting market, in which Spotify, Apple and others have gained ground.
The terms of the agreement were not disclosed. An Amazon spokesman declined to comment. Wondery declined to comment.
Wondery, founded in 2016, has produced some of the most popular podcasts in recent years, including real-life crime series like “Dirty John”, “Dr. Death” and “Over My Dead Body”. The podcast producer and the network claim to have more than 10 million unique listeners each month.
Speculation about the deal had been growing since the beginning of this month, when The Wall Street Journal reported that Amazon was in talks to acquire the podcaster. Bloomberg reported in September that Wondery was exploring a sale.
The deal comes at a time when Spotify, Apple and others continue to dispute the dominance of the podcasting market. Amazon, Apple and Spotify sought to add podcasts to their streaming services, as the medium has become the most popular way of listening to music and allows them to differentiate their services with original podcasts.
Spotify has invested heavily in producing original podcasts, including, most recently, a deal with Prince Harry and his wife Meghan Markle. It also acquired four companies to expand its library, including The Ringer, Gimlet Media, Anchor and Parcast. Meanwhile, Apple has slowly expanded its original podcast efforts and its Podcast app is installed on iPhones by default.
Amazon has an audio content base in addition to Amazon Music. The company also owns Audible, which hosts audiobooks and podcasts. The service has expanded its original audio content in recent years, as well as reinforced its list of free podcasts, including popular shows “This American Life”, “Pod Save America” and “You’re Wrong About”.