The trend: Video podcasting continues to climb in popularity, and there’s no end in sight.

• Almost half of all digital media time (49.2%) will be spent watching video, while only 16.5% will be spent listening to digital audio.
• Video’s popularity is spilling over into podcasts: 30% of podcast listeners between the ages of 15 and 29 mostly watch video with some audio; another 22% listen to and watch video equally. Older consumers tend to listen to audio only.
• The percentage of weekly podcast users who only watch video reached 13% in October 2024, up from 7% in October 2022. Though that's still a small number, it shows how important video is becoming in podcasting.

Zooming out: The video podcasting craze is typified by Spotify’s pivot to video for both creators and advertisers.

• Its Partner Program, launched earlier this year, allows podcasters to upload video files and earn from ads and subscriptions. The company’s first ad exchange, launched in April, is primarily offering video inventory.
• The video creator push is part of Spotify’s ongoing revenue growth strategy. Though growth rates are slowing, the company's US podcast ad revenues are expected to rise from $204.6 million in 2023 to $426.5 million in 2027.
• Spotify and YouTube are racing to dominate video podcasting, each rolling out new tools to attract users and advertisers.
• Netflix is moving into video podcasts to rival YouTube, offering long-form creators more exposure and income potential. Its first original, “The Big Pitch With Jimmy Carr,” debuts on YouTube—not Netflix—signaling plans to fuse premium podcasting with its production quality and IP over time.

Creators chime in: Spotify’s Partner Program is attracting independent creators faster than podcast networks. Half of YouTube’s top 10 most-watched podcasts have already joined the program, Digiday notes, while larger network shows have held off to preserve dynamic ad revenues that make up a large chunk of their monetization.

• Still, the upside is hard to ignore for video-first creators. Creators like Ryth and YMH Studios report earning significantly more on Spotify than YouTube, with Ryth bringing in over $55,000 per month—more than double his YouTube earnings.
• According to Spotify podcast head Roman Wasenmüller, most creators in the Partner Program are now earning more than they did from dynamic ads alone, which lines up with the consumer shift toward digital video.

Our take: Video podcasts are the next frontier for audio and video streamers alike.

As video podcast consumption grows—especially among Gen Z—Spotify’s model is likely to gain traction, particularly as it improves monetization tools and helps creators navigate the trade-offs between ad revenue and direct payouts.