Landslide in podcast landscape

We can say that a small landslide took place in the Dutch podcast landscape last month - there is a good chance that you have already learned something from it. The Danish Podimo has taken over the largest podcast publisher in the Netherlands, Dag en Nacht. Podimo also previously announced that it will partner with Tonny Media, another major podcast publisher. What does this mean for the Dutch podcast landscape? We arrive at the following 4 insights.

Funding podcasts with CPMs is complicated

Podcast publishers monetize CPMs. This stands for "cost per mille" and is the unit of calculation that publishers use to sell advertisements. The average rate is about 35 euros, so an advertiser gets 1.000 plays for that. In the exceptional situation that a very popular podcast series achieves 1 million downloads in a year, this yields 35 thousand euros. Certainly for a high-quality produced series, that is not much. And to think that the number of downloads of most podcast episodes does not exceed 10 thousand. In short, this is a difficult revenue model. It is not surprising that Dag en Nacht and Tonny Media are now opting for a different route. And a month ago podcast publisher Topcast Media also ceased all its activities: also a writing on the wall.

Pay for quality

With the Podimo subscription service, it will become a routine for podcast listeners to pay for quality productions. This will probably lead to a higher quality supply in the long run. Generating income through subscriptions is more predictable than through advertising. And that makes it less risky to invest in productions in advance.

New opportunities for advertisers

Now that many shows are disappearing behind the paywall, it is becoming more difficult for advertisers to reach their audience via digital audio. At least, through advertising. Now that the popular and freely accessible range is shrinking, advertisers with their own productions are more likely to stand out. Especially if these are produced to a high standard.

Battle between platforms

Now that Podimo is going to put many podcasts behind the paywall, a platform battle will arise. Similar to the 'streaming wars' surrounding video payment services. Initially, Podimo will undoubtedly continue to offer some of the podcasts via widely used platforms such as Spotify and Apple Podcasts. But of course with the aim of eventually getting listeners to their own platform, to listen to the entire series there, for example. As a result, these types of platforms run the risk of becoming a kind of showcase for Podimo content. We will continue to follow it with great curiosity.

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