Yahoo Finance TV rewatch podcasts exploded in a way 'we didn't predict,' iHeartMedia exec says
As streaming numbers slow, consumers are increasingly turning to another medium: podcasts.
"I swear it still feels like podcasting is just getting started," Conal Byrne, iHeartMedia Digital Audio Group CEO, told Yahoo Finance in a new interview, saying the medium is in its "first or second inning."
iHeartMedia (IHRT), the largest podcast publisher globally with more than 431 million worldwide downloads and 750 original shows, is the force behind a slew of popular titles, including "Stuff You Should Know," "The Breakfast Club" and "The Herd with Colin Cowherd."
Byrne said podcast genres today embrace sports, comedy, and true crime, but also revealed a new category capturing audience attention: TV rewatches hosted by stars who use the format to reflect on their favorite episodes.
"New Girl," "Bridgerton," "Scrubs," "One Tree Hill," and "90210," among others, have all received a second life thanks to the rewatch format.
Byrne explained that nostalgia is a key driver, adding that the "resurfacing of older IP on streaming platforms" has also contributed to the boom.
The rewatch podcast is "driving community in a whole new way through podcasting that we didn't predict but has just exploded," the executive noted, doubling down that there's still more room to run.
"There are entire genres that podcasting is just now dipping its toe in the water," he said, referencing travel, food, and even fiction with scripted shows now gaining traction, as well.
Audio is the hottest medium in the world right now...Conal Byrne, iHeartMedia Digital Audio Group CEO
Byrne explained that celebrities often come directly to iHeartMedia to pitch and create content.
He cited the success of "Fake Doctors, Real Friends" with Zach Braff and Donald Faison, in addition to the company's joint partnership with Will Ferrell — "Big Money Players Network" — which was created after Ferrell "got the podcast bug" following the development of "The Ron Burgundy Podcast."
Additionally, iHeartRadio has brokered partnerships with Shonda Rhimes, Charlamagne Tha God, the NFL, NBA, Sports Illustrated, and more.
"Audio is the hottest medium in the world right now with the fastest growth rates — to hit that mass reach status in podcasting, you should be exploiting audio and treating it as a playground," Byrne advised, describing it as on one of most reliable and buildable revenue streams.
According to a survey of digital media behavior from Edison Research, just 22% of U.S. consumers over 12 years old knew about podcasting in 2006. Only 11% of survey respondents had ever listened to a podcast. As of 2021, 78% had heard of podcasts and 57% had listened to one — those statistics climbed to 79% and 62% by this year.
Podcasts: A recession-proof medium?
As streaming analysts warn that advertisers and subscribers could pull back amid unfavorable macroeconomic conditions, Byrne revealed that "what you have in podcasting is actually opposite."
The executive explained that, during an impending recession, podcasting is a "medium that advertisers lean into more" with ad skip rates lower than any other video or audio format at just 10% of overall listeners.
He noted how iHeartMedia has seen "advertisers actually spend more every year in podcasting" despite the recent market downturn, with the company's Q1 2022 podcast revenues up 79% year-over-year.
Competitor Spotify (SPOT) has also invested big on podcasts — spending $1 billion on a business that the company expects to turn a profit in the next couple years. CEO Daniel Ek underscored the potential of its podcast unit, estimating that he expects it to ultimately generate margins between 40% to 50%.
U.S. podcast advertising revenues rose to $1.4 billion in 2021, surpassing the $1 billion mark for the first time, according to a study from the Interactive Advertising Bureau.
The bureau predicted that the market will exceed $2 billion in 2022 with an estimate of over $4 billion by the year 2024.
Alexandra is a Senior Entertainment and Food Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
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