Reorganizing Wondery: Amazon executive Steve Boom discusses the company's strategy to merge podcasts and prioritize shows featuring famous personalities.
Amazon has announced a strategic restructuring of its audio entertainment operations, consolidating the Wondery podcasting division with the larger Audible audiobook division. The move is aimed at streamlining operations and adapting to shifts in the audio entertainment market, particularly the rise of video-enhanced podcasting and changing consumer preferences.
The reorganization reflects a broader efficiency drive within Amazon's audio business, aiming to better support creators and listeners while responding to industry trends toward multimedia content. According to Tom Webster, a partner in the podcast trade organization Sounds Profitable, the reorganization is in line with the larger trends in podcasting.
The restructuring was prompted by the clear bifurcation in Wondery's output, with many of the platform's most popular titles falling into either narrative-driven or personality-centric categories. The two types of podcasts require different approaches to development, marketing, and audience retention support.
Amazon's decision to restructure was made in response to the growth and evolution of the podcasting market, particularly the boom in video-enhanced programming. With the restructuring, Wondery's narrative titles will be added to the vast archive of programs available under Audible's subscription platform.
The focus of Wondery will turn to the care and feeding of its celebrity- and personality-fronted shows. Examples of personality-focused shows on Wondery include Dax Shepard's "Armchair Expert," Travis and Jason Kelce's "New Heights," and LeBron James' upcoming "Mind the Game" series.
The business models for video-creator podcasts and narrative podcasts are quite different, with video-creator podcasts monetizing well through advertising and narrative podcasts best monetized through a premium business model. Amazon, with its leading company in the world in premium spoken word modernization, is the best place to monetize narrative shows appropriately.
The restructuring will result in about 100 layoffs within Wondery. Approximately 110 jobs have been cut, including the departure of Wondery's CEO Jen Sargent. Some employees are being reassigned within Amazon, but many roles across production, marketing, and operations were eliminated.
Wondery, which was launched in 2016 by entrepreneur Hernan Lopez, ranks high among the most popular podcast platforms in the country. The platform looked to differentiate itself with both volume of production and starry names. Jen Sargent, who has been CEO of Wondery for the past four years, will exit the company after a transition period.
In summary, the strategic reason for consolidating Wondery’s podcasting division with its Audible audiobook division is to adapt to podcast industry evolution toward video and multimedia integration. The restructuring reflects Amazon’s pivot to a more unified and efficient audio content strategy, consolidating Wondery’s legacy strengths where they align best within Amazon’s broader audio ecosystem.
References: 1. The Verge 2. Variety 3. Recode 4. The Hollywood Reporter 5. The Information
- In light of the podcast industry's evolution towards video and multimedia integration, Amazon's restructuring of its audio business aims to unify and strengthen its podcasting and audiobook divisions, which includes consolidating Wondery with Audible.
- The reorganization of Wondery within Amazon's audio operations aligns with the growing trend of podcasting towards multimedia content, and positions the company to optimally monetize narrative shows through its leading premium spoken word modernization platform.
