A $325 Million Deal Is One More Sign That Podcasting Has Become Big Business

Satellite radio company Sirius XM has purchased Stitcher, hoping to add podcast advertising revenue to its bottom line.

By Shelly BrisbinJuly 16, 2020 11:58 am,

In a deal said to be the largest podcast-related acquisition to date, Sirius XM this week agreed to purchase podcast network and producer, Stitcher, for $325 million. The acquisition is the latest in a flurry of activity among media companies seeking dominance in podcasting, even as listenership has faltered in recent months. 

Omar Gallaga told Texas Standard host David Brown on Thursday that companies like Sirius XM and Spotify have been snapping up podcast production companies and content-makers. A previous high-profile merger involved Spotify’s purchase of Gimlet Media. 

But for podcasters, these acquisitions don’t always result in fame and fortune.

“For every successful podcast that actually makes money, there are probably hundreds, if not thousands, that don’t make any money, ever,” Gallaga said. “Usually, they go on for a couple of months, and then they just die.”

What you’ll hear in this segment:

– Why media companies are buying podcast producers

– How Spotify’s new popularity charts are intended to bolster the company’s podcast offerings

– Why podcast producers aren’t benefiting from the trend toward big podcast networks

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