Netflix Partnership With Spotify Will Test Video Podcast Demand.

Netflix just-announced video podcast deal with Spotify may be the start of something bigger. Executives say that depending on how well a selection of episodes curated by Spotify and distributed by Netflix are received, it could open the door to similar arrangements with other podcast producers.

“We’re going to build into this category like we do with our other categories based on demand signals that we get from our members,” Co-CEO Greg Peters said. “We see this as really the opportunity to integrate high-quality video podcasts that broadens the Netflix offering beyond all the incredible films and series, beyond the live events that we are building, stand-up specials, and games. We hope that ultimately reinforces our value as the most important service for your entertainment needs.”

Peters said during an earnings call Tuesday that the Spotify “co-exclusive partnership” will allow Netflix to provide even more entertainment options for subscribers when they’re looking for pop culture, lifestyle, sports or true crime. “We get to deliver to them wherever and however they want to watch,” Peters said.

Earlier this year Netflix executives suggested that as part of their push to embrace the next generation of creators, it could also look to video podcasters posting content on rival YouTube. The company hasn’t made any moves yet, but Netflix executives say the opportunity remains.

“We want to be in business with the best creators on the planet, wherever they are. Some of them are in Hollywood, some of them are in Korea, some of them are in Paris, and some of them are sitting on social media platforms and have yet to be discovered,” Co-CEO Ted Sarandos said. “Not everything on YouTube is a fit for us, but there are some creators like Mark Rober, like Miss Rachel, that are great fits for us.”

In the near term, Spotify will be its podcast introduction. The companies say early next year a selection of shows produced by Spotify Studios and The Ringer, and covering a range of genres — including sports, culture, lifestyle, and true crime — will make video episodes available on Netflix. Details of the licensing agreement have not been disclosed, including how much Spotify will be paid — if anything — and how long the deal runs. Ads baked into an episode will carry over to Netflix, but the video streamer will not run other commercials alongside the podcasts. 

Potentially key for podcasters that turn up on Netflix, the company expects to more than double its ad revenue in 2025. It more than doubled its upfront commitments for 2026. And by year end, Netflix will be introducing interactive ads.

“Advertisers are excited about our growing scale. We’ve got a highly attentive and engaged audience,” Peters said. “The rollout of our ad tech stack means we’ve got more formats, we’ve got more measurement, we’ve got more ways to buy. Our slate is a critical and important source of competitive differentiation. I would say we are feeling good about our growth trajectory.”

Netflix reported third-quarter revenue of $11.5 billion, up 17% from a year ago. Netflix doesn’t release advertising revenue numbers, and it also no longer releases its subscriber figures.

Netflix has already been making some forays into podcasting, mainly working with third parties to produce several shows that are promotional vehicles for shows on the video platform. They include “We Have the Receipts,” which dives into the reality world of Netflix shows, and “You Can’t Make This Up,” which explores the real stories behind the making of the biggest documentary series and films on Netflix. Other notable podcasts include “Skip Intro with Krista Smith,” which provides exclusive interviews and behind-the-scenes stories from the world of television, and “The Crown: The Official Podcast,” which goes behind the scenes with the Netflix series.

“We’ve always embraced change. We thrive on competition. It pushes us to improve the service even faster for our members,” Sarandos told analysts. He pointed out that Netflix today accounts for about 10% of time spent with TV. “Looking ahead, we continue to have a massive opportunity,” he said.