Time to Scale

Happy Sunday, and welcome back to another dive into the intersection of podcasting x investing.

This week, let’s talk about scale, not as a nice-to-have, but as the only strategy that matters right now. We’re past the stage of experimentation. The next wave of winners in podcasting will be those who scale quickly and decisively. Not just content. Not just tech. But both.

But first, a quick thank you to everyone reading, and especially those who have shared feedback or passed this along to colleagues - keep it coming. And if someone forwarded this to you, you can subscribe for free here.

Quick Hits:

• This week, I spoke with several companies preparing to raise in the fall. Both content and tech founders are seeing a clear window of opportunity to grow and raise capital. If you want to chat about the opportunities I’m seeing (or are raising yourself), reach out.

  • I also advised on a SAFE round that officially closed yesterday - more on that soon. Things are heating up.

• Continuing our theme of global growth, India’s podcasting, with 105M+ listeners in 2024, is expected to reach 200M by 2025, and revenue is projected to grow sixfold by 2030. With 750M smartphones and a tradition of oral storytelling, the stage is set for massive digital audio expansion. 

• PodcastOne reported FY revenue up 20% YoY to $52M.

• Audioboom posted Q2 revenue up 5% YoY—but adjusted EBITDA grew 400% to $1.2M. A major turnaround from just 18 months ago.

As we approach more Q2 earnings, I will continue to break down earnings calls from companies like Spotify, iHeart, and SiriusXM, as trying to decipher exactly how well their podcast divisions are performing can be murky, as they often lump growth in with other areas. For companies like PodcastOne & Audioboom, the results speak for themselves, as podcasting is their main revenue line. 

Alright, let’s talk about scale.
For a long time, podcast companies focused on doing one thing well. A high-end studio creating valuable IP. An ad-tech company solving a narrow problem. A hosting platform. A network that sold inventory for creators. You get the idea.

However, focusing on one lane also created vulnerabilities, as most relied on a single revenue stream. The major platforms knew this, which is why they aggressively pursued M&A a few years back. They acquired content, then hosting & distribution, then layered on ad-tech. Now, it’s time for independents to do the same.