Parcast founder Max Cutler says he remains optimistic about podcasting’s future despite a spate of negative stories about the industry in the business press. “There have never been more opportunities for podcast creators and startups than there are at this moment,” he writes in a post on LinkedIn. Cutler expects the first half of the year to see softer advertising trends as marketers and ad agencies hold back on spending, but he thinks that will lead to bigger growth during the second half of this year.
Rather than panic at the current economic forecast, take a long-term view,” Cutler says. “The slower-than-expected adoption of brand advertising (due to bad tech, not format) will be advantageous to podcasting in 2023. Remember, direct response advertising thrives in a down economy.”
Cutler – who sold his company to Spotify in 2016 and since has served as VP, Head of Talk Creator Content & Partnerships – also predicts there will be some “desperate M&A” this year as companies with “fundamentally bad” business models feel the pinch of the advertising pullback. “This is more of a reflection on poor business models than it is on the industry as a whole,” he writes.
Yet at the same time, Cutler thinks a billion-dollar podcast company will launch this year as more experienced media companies enter the space as they bet the “panic” about podcasting’s slower growth rate is an “overreaction” and in the long-run companies like Disney or Netflix could be larger forces.
“I recognize that economic factors are going to impact podcasting, just like they are across all industries,” Cutler says. “But I remain optimistic and strongly believe the best days are ahead – great operators and business models will prevail and creators will innovate, resulting in more growth in the podcast industry overall.”