Amazon Echo Dot Speaker
CNBC | Richard Washington
Amazon announced Wednesday that it will acquire podcasting company Wondery, expanding its original audio content catalog.
As part of the transaction, Wondery will join Amazon Music, the e-commerce giant’s music streaming company. In September, Amazon Music added podcasts to its platform, aiming to gain a share of the increasingly competitive podcast market, in which Spotify, Apple and others gained ground.
The terms of the agreement were not disclosed. An Amazon spokesman declined to comment. Wondery declined to comment.
Wondery, founded in 2016, has produced some of the most popular podcasts in recent years, including true crime series like “Dirty John,” “Dr. Death ”and“ Over My Dead Body ”. The producer and podcast network claims to have over 10 million unique listeners each month.
Speculation of the deal has been building since the beginning of this month, when The Wall Street Journal reported that Amazon is in talks to purchase the podcast. Bloomberg reported in September that Wondery is exploring a sale.
The deal comes at a time when Spotify, Apple and others continue to play for dominance in the podcast market. Amazon, Apple and Spotify have sought to add podcasts to their streaming services, as the environment has become the most popular way to listen to music and allows them to differentiate their services from original podcasts.
Spotify has invested heavily in the production of original podcasts, including, most recently, an agreement with Prince Harry and his wife Meghan Markle. It has also acquired four companies to expand its library, including The Ringer, Gimlet Media, Anchor and Parcast. Meanwhile, Apple has slowly expanded its initial podcast efforts, and its Podcast app is installed by default on the iPhone.
Amazon has a foothold in audio content beyond Amazon Music. The company also owns Audible, which hosts audio books and podcasts. The service has expanded its original audio content in recent years, as well as consolidated its list of free podcasts, including the popular shows “This American Life”, “Pod Save America” and “You’re Wrong About”.