Spotify (SPOT.US) will partner with Netflix (NFLX.US) to launch video podcasts to reach a larger audience.

Spotify technology company (SPOT.US) is partnering with Netflix, Inc. (NFLX.US) to bring some popular video podcasts from its platform to the latter's streaming service, reaching a larger user base. The two companies announced on Tuesday that specific series podcasts from The Ringer and Spotify Studios, including "The Bill Simmons Podcast," will be launched simultaneously on both platforms. The collaboration will initially begin in the U.S. market next year and gradually expand to more regions. Currently, Simmons uploads the full video podcasts to Spotify and YouTube. However, after the partnership with Netflix takes effect, only selected clips will be available on the YouTube platform, with no full content. Other podcasts that will be available on Netflix include "The Zach Lowe Show," "The Rewatchables," "Conspiracy Theories," and "The Big Picture." The audio versions of these programs will still be available on various podcast platforms. Lauren Smith, Vice President of Content Licensing and Strategy at Netflix, stated in a release, "From pop culture, lifestyle, to true crime, sports events, these carefully selected video podcasts will bring Netflix fresh voices and perspectives." Podcasts were originally purely an audio medium, but are increasingly moving towards video formats in order to reach a wider audience and leverage the strong algorithm advantages of platforms like TikTok, YouTube, and Instagram. Today, over 1 billion people watch podcast content on YouTube each month. According to data from Edison Research, approximately 77% of new podcast listeners say they actively watch video podcasts. Ted Sarandos, Co-CEO of Netflix and a board member of Spotify, has previously stated that video podcasts are expected to eventually have a place on the Netflix platform. In fact, Netflix has already tested the waters by launching two special episodes of "Kill Tony" podcast, hosted by comedian Tony Hinchcliffe, featuring a weekly open mic night format. As a pioneer in the music streaming field and an early driver of the podcast industry, Spotify has been trying to establish its platform as an important site for video content. The Swedish company has converted most of its in-house produced programs into video format and launched a creator program to encourage YouTube bloggers and other content creators to upload their work on its platform. During the company's second quarter earnings call, Co-founder and CEO Daniel Ek revealed that Spotify is currently hosting over 430,000 video podcasts on its platform, with over 350 million users having watched video podcasts. It is worth noting that the video podcasts on the Spotify platform will retain advertisements, consistent with the current format, while Netflix will offer an ad-free version of podcast programs for its subscription users without ads.