The news: Netflix and iHeartMedia are discussing a deal that would allow the popular streaming platform to license iHeartMedia’s video podcasts, shortly after Netflix inked a similar deal with Spotify, per Bloomberg.
Netflix is requesting exclusive video program rights for select iHeartMedia podcasts including “The Breakfast Club” and “Jay Shetty Podcast.” Full episodes would no longer be available via YouTube under these terms. The deal does not include rights to all iHeart podcasts.
Zooming out: Netflix made its interest in podcasts clear prior to its Spotify deal; the company began co-producing a podcast with BBC Studio’s Audio unit in May. But its deal with Spotify marked the company’s first big foray into the video podcast arena, capitalizing on the some 77% of listeners who watch video podcasts, per Edison Research.
Netflix’s bet: A new licensing agreement with iHeart would broaden Netflix’s podcast portfolio, allowing it to better compete with YouTube, its main competitor in digital video and the preferred podcast platform for most listeners and viewers.