Watching these cycles go from years to months, particularly in media, is indicative of how fickle the business environment is for content creators. “During a difficult time for the old guard of newspapers and magazines, these reporters pursued their passions and found an opportunity to foster a burgeoning medium.” These podcasts became a lifeline for writers and story tellers during an active contraction of the traditional media landscape, and just as quickly have been adjusted to reflect the need for profitable IP pretty soon after inception. “The ramifications of this contracted environment have varied. Teams are making do with less by reducing the number of episodes they produce or by employing a smaller team. Companies laid staff off over the past 18 months (or shut down entirely), and in some cases, currently lose money on projects because the budget is so low.” At the end of the day, the need for sustainability in the media business models is obviously a priority, but I will also advocate for the spaces and circumstances where an effective story can be told that isn’t a runaway profit machine.
Reporter covering podcasting, music, audiobooks and the broader audio world at Bloomberg
NEW: I've written the story of the podcasting business' market correction many times over the past 18 months, but we're now getting a sense of just how much the economics have changed. Not too long ago, production companies could be paid $500,000 to make a limited, narrative series. Those same deals, which are increasingly hard to come by, are now being halved. Most budgets currently come in between $150K to $250K, according to three execs I spoke with. This means thinner margins -- if not outright losses -- a reduction in staff on shows, fewer episodes, and likely a drop-off in quality as studios make do with less. Some companies are also trying to become distributors themselves and retaining the rights to the programming. I wrote about this and more in my newsletter this week, which you can read below. Do the budgets ever bounce back, or is the new normal?
