Digital Maturity Shows Its Claws

Michael Hedges February 15, 2023 Follow on Twitter

Maturity is a label many would like to avoid. This is noticeable in discussions of business cycles, but not only. Everybody loves the growth phase; all fun, everything new and different, money is everywhere. Maturity means accountants. What follows, naturally, is the arrival of break-up specialists.

The digital world is galloping into maturity. Nobody (almost) gets excited about cloud computing, though it is where all digital life sits. Cryptocurrencies are falling off the screens, mostly because there was never anything there. We go through this everyday in digital life.

Podcasts became a very cool audio product a dozen years ago. Accessible on also very cool mobile phones, their short, specialized productions competed with standard fare radio channels offering “the greatest hits of yesterday and today with less talk” in 13 variations. Groundbreaking podcasts like “Serial” popped out, attracting the attention of particularly desirable listeners ready to check-out the new, different and compelling.

But podcasts have reach “a pivotal moment,” opined the UK Observer (February 4). Quoting global data from podcast engine Listen Notes, the number of new podcasts has fallen rather significantly. In 2020 1.1 million podcasts were launched. That tumbled to 219,000 last year. “I would say sponsorship is harder to find now and that getting investors to understand the amount needed to do something properly is also harder,” said podcast producer Kate Taylor. That would be a good definition of entering that maturity phase.

“Niche content is a real strength in the market, and people want to make their own, increasingly specialist shows,” added Ms Taylor. “Let’s not forget the vast majority of podcasts are not listened to by very many people anyway. It’s all smoke and mirrors when it comes to listenership. But size is not necessarily the main thing.” And it is fewer podcasts offering more episodes.

Streaming audio service Spotify may be showing a glimpse of the next phase. After spending wildly on podcasts, the company is shrinking the effort through a series of layoffs, including chief content and advertising business officer Dawn Ostroff who was in charge of podcasting, reported Axios (February 9). The podcasting business “has reached the point of maturity” and the company will now be fixated on “efficiency.” And that means calling in the accountants.

Expanding on the digital gloom, the New York Times (NYT) (February 15) exclaimed “the era of dumb money is over,” specifically referencing media buyers fleeing podcasts. Quoting producer Magnificent Noise co-founder Eric Nuzum: “People had been throwing money at things just to see if they could get in and scale up audience quickly, but now everyone’s being a little bit more conservative.” NYT is, also, a prolific podcast producer.

If it doesn’t work in “the short-term” podcast publishers are reluctant to invest in new projects or, even, to continue others. As podcast listening soared in 2020 publishers, like Spotify, threw money at everything, typically acquiring podcast producing studios. Spotify cancelled 11 original podcast shows last year. “If the audience is there, that’s the real sign of health,” concluded the optimistic Mr. Nuzum. “The business will figure itself out.”

See also...

• Hot Topics - Podcasts and Podcasting

• Hot Topics - Digital Transitions

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