The rightsizing of the podcast business

The business is changing right now

There are two conflicting narratives about the podcasting business today. The first is exploding growth, with revenues and audiences rocketing upward along with newly minted stars and breakthrough content. The other is ominous: most podcasts are no longer in production, there hasn’t been a new mega-hit in several years, while companies are hyping download numbers, cutting podcast titles and staff.Can both be true?

The first narrative is well covered in the happy press and effusive Twitterites who seem to have an insatiable need to comment on all things podcasting.

The second narrative is worth zooming in on. It is about a rightsizing of the business happening in real-time, and we are likely to see more as we roll into budget season.

What’s really going on

Yes, podcasting is buzzy and fun. Over the past few years, a myriad of big companies and startups wanted in on the new, new thing. They made significant investments in studios, producers, editors, and hosts. Much of this change seemed symptomatic of the great business axiom, “the other guy must know something.” Companies feel a need to jump on a fast-moving bandwagon or risk FOMO. In the case of podcasting, a few hired fantastic talent while others staffed up with…