You may have noticed…
The entire podcast industry is going through a major shake-up!
In today’s episode, I’m discussing the big shift that’s happening right now - and some reasons to have hope for the bright future of podcasting.
Let’s dive right in!
What is The Big Podcasting Shake-Up?
A lot of people are nervous, and I totally get it. You may have seen the news about big companies doing layoffs, canceling shows and decreasing their ad budgets.
For example, Acast has laid off 15% of their workforce, which amounts to 70 people according to data available online.
Spotify has also pivoted and canceled over 50 shows. They laid off 6% of their workforce, or about 600 people according to the numbers we see online. In a new industry, 6% is a lot.
A lot of being an independent creator is keeping abreast of happenings in our industry! It’s our responsibility as entrepreneurs to watch for trends, forecast shifts and understand the economics facing our businesses.
If you’re hearing about this whole shake-up business for the first time, I have some resources to recommend.
I suggest subscribing immediately to Podnews (a free, daily email with podcasting news and studies) and one of my personal favorites, The Squeeze with Skye Pillsbury. These sources can help you make informed decisions about where to spend your money, what content to create and what moves you should make as a professional.
We Saw This Coming!
The thing is, a lot of us predicted these shifts.
Back in 2020 when the pandemic hit, everyone was at home starting a podcast. It was such an exciting time for creators who wanted to quit their 9-5 job and venture into the world of content. It was an exciting time when people felt open to taking risks and leaving their comfort zone behind them.
As you know, that includes me! I left my career in healthcare to launch Adode Media
In podcasting in 2020, business was booming. Companies were spending a ton on ads, launching and sponsoring new shows, and hiring like never before.
Now, a few years later, we are headed into an economic recession. Companies are uncertain of the future of the economy as we know it, so they’re making difficult decisions.
For the past few years, ad spend has been high. Companies were investing big time, taking major risks, and working with influencers on a large scale. Now, we’re seeing the inevitable shift away from high spending.
What is the Impact of the Shake-Up?
This change has a trickle-down effect on us creators. Beyond our favorite shows getting canceled, there are more effects - starting with funding.
Ad spend is continuously decreasing for most (but not all) industries. If you rely on ads to make your money, consider diversifying with other means of making money in podcasting, watch past episode on 6 Ways to Make Money from Your Podcast. There are so many ways to create an income with your podcasting, from live events and merch to affiliate marketing. Map out a plan that makes your show more sustainable in the long term.
Funding for live events is getting cut, with the exception of huge national conferences. If you’re someone who loves live events like I do, you might have a trickier time getting funding for your event or finding partnerships. This may mean that you structure your live event differently. You may have to work harder to secure financing for your event whether it means partnering with smaller local companies that need the press attention, or making your event smaller or less ambitious in scope.
Layoffs are continuing, and shows are getting canceled or changing networks. If you’re on the hiring end, assess your budget. Consider how you can diversify to make your company unshakeable!
If you work in podcast production like I do, these layoffs are affecting your clients. Now is your shining moment to prove your value - by helping them achieve their podcasting goals in measurable ways. Set specific goals with your podcasting clients that you can meet and point to even when the economy shifts. Help them envision what success looks like for their show - number of listeners, number of new clients brought in by their show or number of followers. Providing real, measurable results will help you remain in a business partnership even when times change.
This shake-up is a call to action to stay ready, so you don’t have to get ready.
Reasons to Be Hopeful
All of this change can create a lot of fear.
But I want to encourage you to ride the waves with a hopeful outlook, because our work is important and will endure during tough times.
I want to remind y’all that podcasting is a very new industry. Yes, that is part of the reason why all this uncertainty is scary - but also the reason we should be hopeful.
Part of me is glad we’re experiencing these changes now, rather than 50 or 60 years from now. As a burgeoning industry, we want to ensure that we’re building our companies on a strong foundation, one that won’t crumble under pressure.
Sure, podcasting was experiencing explosive growth - but that growth could not go on forever in that way. At some point, we had to stop and assess what’s working, what’s not and what could be improved. I believe that is what’s happening here.
Once the dust settles, we’ll have a clearer idea of what our action steps should be. In the meantime, I recommend doing an honest assessment of your income sources - do you need to diversify so you’re not taking on too much risk? Do you need to rethink leaving your safe, stable 9-5 right this second?
As someone with multiple brands, I am so glad I diversified my income sources. I suggest that you consider doing something like that in order to build more stability.
Doing this work now will help you develop a podcast that stands the tests of time - no matter what the outside world looks like.
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