Netflix Podcast Sellers’ Guide: What They Want — and How Much They’re Paying

If there were any lingering questions about how seriously Netflix is pursuing podcasts, the streaming giant put them to rest last week with the news that it was teaming with Spotify to nab semi-exclusive video rights to Jay Shetty’s On Purpose in a multi-year deal worth up to $100 million.

It’s a major move for Netflix, and industry sources tell me that the Netflix-Spotify combo won out in a competitive situation for Shetty’s pod with four offers in the nine figures. New video episodes of On Purpose — in which the self-help guru interviews such boldface names as Kendall Jenner and Michelle Obama about how to live a happier, healthier life — will no longer publish on YouTube, where Shetty has a cool 5 million subscribers. The show will start streaming on Netflix in July. (Spotify will also offer the video episodes and will sell ads on the show, which will continue to distribute audio episodes on the major podcast platforms.)

After dropping its first batch of licensed podcasts in January (everything from The Breakfast Club to The Bill Simmons Podcast to Jake Shane’s Therapuss), Netflix is on the hunt for another round of deals, according to multiple dealmakers. And it’s continuing to take meetings about original podcast concepts like The Pete Davidson Show and upcoming shows from Rotten Mangoes host Stephanie Soo and former NBC News anchor Brian Williams. With On Purpose, the company is signaling — once again — that it’s got YouTube in its sights.

So today, as Netflix ramps up its podcast investment, I’m bringing you a guide to selling your show (licensed or original) to the streamer right now. Based on conversations with agents, lawyers and other podcast industry insiders, I’ve got all the details about the executives leading the charge, the shows they’re looking to buy and the deal terms they’re offering.

“They’re experimenting a lot,” says one dealmaker of Netflix’s approach to the space, though a few key themes have emerged. The streamer is looking for shows that will entertain its 325 million global paid subscribers — and ideally become their next obsession — but it doesn’t want to be the next Spotify or Apple Podcasts. It’s focused on offering a hand-picked selection of shows that it thinks people will really watch.

“Their goal is to change how people perceive Netflix,” says a podcast agent. “You’re not just opening the app at 8 p.m. on your couch, but at 8 a.m. as you’re on your way to work.”

What’s working? Podcasts are excluded from Netflix’s top 10 lists, so third-party data offers the best look at early successes. Samba TV estimates 13 percent of Netflix viewing households watched a podcast during the first three months of the year, and the top three titles were Charlamagne tha God-hosted The Breakfast Club (which Netflix has doubled down on with live episodes streaming as of yesterday), the official Bridgerton podcast and Murder with My Husband. Therapuss, live Bill Simmons Podcast episodes and original Allegedly from journalist Ellison Barber have also been breakouts, according to a source familiar with Netflix.

Keep reading for a full breakdown on Netflix’s podcast buying strategy, including:

• The key execs making the deals to drive its podcast push
• Which high-profile leaders from other verticals at the streamer are staking their claim in this new space
• The genres Netflix is targeting — now in its second round of licensing deals — and what it’s cool on (hint: a format that isn’t so video-friendly)
• How Netflix has positioned itself as an easy partner for podcasters, with one major caveat…
• The deal point that drives some talent straight back to YouTube
• The streamer’s strategy for originals: “curated” stars from Davidson to Williams, with room for quirky one-offs and creative swings
• Why dealmakers don’t mind the murky originals mandate as Netflix finds its way