Core Insights - Spotify's advertising business is struggling, with CEO Daniel Ek acknowledging the company has been moving too slowly in this area [1][4] - The goal is for advertising to account for 20% of overall revenue, but as of June, it only made up 11%, with second-quarter ad revenue down 0.7% year-over-year [1][5] - Industry analysts are questioning whether Spotify's ad business has plateaued, contrasting with the company's overall strong performance in user growth and stock price [2][3] Advertising Strategy - Spotify's ad efforts have been hindered by a focus on its more lucrative subscription business, leading to a decline in customer service and low ad rates [3][21] - The company has recognized the need for change, leading to the departure of longtime ad head Lee Brown, with a search for new leadership underway [4][5] - Spotify's podcast strategy, which aims to connect advertisers with Premium users, has been described as messy, with inconsistent execution and various pivots [6][9] Financial Performance - Spotify generated $1.9 billion in ad sales last year, but the profitability of its Premium tier is significantly higher, estimated at 15 to 20 times that of the advertising tier [7][8] - The average CPM for digital audio ads was $16.51 in the second quarter, with Spotify claiming its average CPM is "far above" $9 [15][16] Customer Service and Operations - Advertisers have expressed concerns over Spotify's customer service, citing slow response times and high turnover in the ad sales team [21][22] - Issues with ad consistency in podcast streams have been reported, affecting campaign performance [23] Future Outlook - Spotify is optimistic about improving its ad business by 2026, with recent initiatives including the launch of the Spotify Ad Exchange and partnerships with adtech companies [25][26] - The company is also focusing on video content as a potential revenue stream, with a significant increase in video podcast consumption reported [20][19]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $15 million, a 14% increase from $13.1 million in the same quarter last year [12] - Operating loss decreased to $1.05 million from $1.4 million year-over-year, primarily due to lower amortization [12] - Net loss improved to $1.05 million or $0.04 per share, compared to a net loss of $1.4 million or $0.06 per share in the prior year [13] - Adjusted EBITDA turned positive at $600,000, compared to a negative $300,000 in the same quarter last year [13] - The company ended the quarter with zero debt and $1.9 million in cash and cash equivalents [13] Business Line Data and Key Metrics Changes - PodcastOne launched 14 new podcasts, increasing the total to 206 active shows [10] - Video views surged by 218% year-over-year across multiple platforms, indicating strong audience engagement [10] Market Data and Key Metrics Changes - PodcastOne ranked as a top 10 US podcast publisher for the eighth consecutive month, with a monthly unique US audience of 5.4 million and 20.3 million downloads and streams as of July 2025 [8] - The podcast advertising market is projected to see over $2.4 billion in investments this year, highlighting the industry's growth potential [7] Company Strategy and Development Direction - PodcastOne aims to leverage its vertically integrated model to drive long-term value for creators, advertisers, and shareholders [7] - The company is expanding its video production and distribution efforts to enhance audience engagement [11] - PodcastOne is actively exploring M&A opportunities, particularly in acquiring talent and podcast platforms [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about building on momentum with high-profile initiatives and events planned for the upcoming months [15] - The company expects full-year revenues to be between $56 million and $60 million, representing at least an 8% increase from the previous fiscal year [14] - Adjusted EBITDA for the full year is anticipated to be between $3 million and $5 million [14] Other Important Information - PodcastOne has upgraded its order management system to improve operational efficiency and sales processes [17] - The company is focused on compelling content, strategic monetization, and maintaining trusted relationships with talent and advertisers [17] Q&A Session Summary Question: How does the growth in video views translate into revenue? - Management indicated that current contracts consider both audio and video views, allowing for higher rates per spot due to increased video viewership [21][22] Question: What is the current M&A environment for platforms? - Management noted that the platform side is dominated by a few major players, but there are still interesting opportunities for acquisition [26][29] Question: What factors could drive revenue to the high end of guidance? - Acquiring a company with good revenues could push the numbers higher, while not acquiring would keep it at the lower end [33] Question: How is stock-based compensation affecting cost of sales? - Management confirmed that stock-based compensation is being used to reduce cash payments, which is part of their strategy to manage costs [39][40] Question: How do consumers interact with video podcasts compared to audio-only? - Management noted that video consumption is significant, with many viewers engaging with content actively, while others may listen passively [49][50]

LOS ANGELES, Aug. 13, 2025 (GLOBE NEWSWIRE) -- PodcastOne (Nasdaq: PODC), a leading publisher and podcast sales network, announced today its operating results for the first fiscal quarter ("Q1 Fiscal 2026") of its fiscal year ending March 31, 2026 ("Fiscal 2026"). Key Highlights: Management Commentary "PodcastOne is a legacy podcasting brand. Since our launch in 2014, our dedicated approach to audio first entertainment both within production and advertising sales has set the industry standard for successful ...

About PodcastOne PodcastOne (NASDAQ: PODC) is a leading podcast platform that provides creators and advertisers with a comprehensive 360-degree solution in sales, marketing, public relations, production, and distribution. PodcastOne has surpassed 3.9 billion total downloads with a community of 200 top podcasters, including Adam Carolla, Kaitlyn Bristowe, Jordan Harbinger, LadyGang, A&E's Cold Case Files, and Varnamtown. PodcastOne has built a distribution network reaching over 1 billion monthly impressions ...

With the rise of video-centric podcasting, the industry is poised to usher in a new wave of series and deals. Meanwhile, makers of traditional audio series are hurting. https://t.co/veUy5HSBt7 ...

Core Insights - Amazon is restructuring its Wondery podcast division, leading to job cuts and the departure of CEO Jen Sargent [2][3][4] - Approximately 110 employees will be laid off as part of this consolidation effort [3] - The restructuring aims to better align teams and enhance the experience for creators, customers, and advertisers [3][4] Company Actions - Amazon is consolidating Wondery units under its Audible audiobook and podcasting division [2][4] - The narrative podcasting unit will be integrated into Audible, while creator-led content will be moved to a new unit called "creator services" [5] - This move follows Amazon's acquisition of Wondery nearly five years ago, which was part of its strategy to expand original audio content [4] Industry Context - The podcasting landscape has evolved significantly, with increasing competition from video podcasts on platforms like YouTube [5][6] - Video podcasts require different strategies for discovery, growth, and monetization compared to traditional audio-first narrative series [5]

Core Insights - Amazon is restructuring its Wondery podcast studio due to a shift in podcast consumption towards video and personality-driven content [1][2] - Approximately 110 employees, including Wondery's CEO Jen Sargent, are being laid off as part of this reorganization [1][11] - The podcasting landscape has evolved, with a notable increase in video-forward, creator-led content, necessitating distinct strategies for audience engagement and monetization [5][6] Organizational Changes - Wondery's narrative podcast team will be integrated into Amazon's audiobook division, Audible, focusing on audio-led storytelling [3][8] - The creator-led content team from Wondery will join the Talent Services team, forming a new organization called Creator Services [9] - A new team will be established to enhance advertising and sponsorship opportunities across Wondery and Amazon Music, led by Angie More [10] Performance and Future Direction - Wondery has produced award-winning podcasts and has seen podcast revenue grow by more than 4 times since joining Amazon [4][11] - The restructuring aims to better support creators in monetizing their content and simplify the advertising process [4][6] - The changes are expected to enhance the overall experience for creators, customers, and advertisers, aligning with strategic opportunities in the evolving podcast market [6][12]

The news was first reported by Bloomberg and confirmed to Deadline by a person familiar with the situation. Watch on Deadline Amazon has reorganized its audio divisions, laying off more than 100 workers and shuttering its Wondery studio. Among those exiting is Wondery CEO Jen Sargent. Marshall Lewy, who has headed up content at Wondery, is among a number of staffers shifting to Audible, Amazon's Newark, NJ-based subsidiary. Narrative podcasts under Wondery's banner will be integrated into Audible. Personali ...

"The podcast landscape has evolved significantly over the past few years," Steve Boom, Amazon's vice president of audio, Twitch, and games, wrote in a staff memo seen by Bloomberg. "The rise of video has also blurred the lines on what it means to be a podcast creator." The story notes that the changes indicate that Amazon's push into podcasts hasn't gone as planned. Despite securing big names in the business, the company is now shifting its strategy in an effort to better compete with rivals like Spotify an ...

As podcasting becomes video-oriented, Amazon is shuffling Wondery into Audible and a new “creator services” team while cutting approximately 110 staff members https://t.co/uPLxN1frYP ...