Podcast Market Deep Dive - BDMI - Jan 2020

January 2020
Podcast Market Deep Dive
Brendan Brits

View Slide

2 January 2020 · Bertelsmann
Exploring the State of the Podcast Market
Executive Summary
Section I: Growth in the Podcast Market
Section II: The Podcast Listener
Section III: The Podcast Creator
Section IV: The Podcast Advertiser
Section V: Podcasts & the Capital Markets
Section VI: Representative Companies Across
the US Podcast Value Chain
Table of Contents
This report presents BDMI’s perspective on the current state of the podcast
market and outlines key trends and themes to watch as the industry continues
along a path of rapid growth and technological advancement.
The report sets the stage with an overview of growing global engagement,
demonstrating podcasting’s emergence in public consciousness and fervent
loyalty among avid listeners. Analyses of the three main constituents of the
podcast industry (listener, creator, advertiser) follow, detailing the status quo with
observations on emerging trends, the role of technology & platforms, and best
practices for each.
The report concludes with an overview of capital markets activity related to
podcasting and a representative list of companies innovating across the podcast
value chain. Both exemplify the growing focus on the space by creatives,
entrepreneurs, and strategic & financial investors.
The Podcast
Listener
The Podcast
Advertiser
The Podcast
Creator
Technology &
Platforms

View Slide

Focused
Investment
Theses
• Next Gen Media
• Consumer Brands
Select Fund-of-Funds Investments
• Enterprise Tech
• Fintech
Presented by BDMI, Seed Through Series B Corporate Venture Capital Fund
BDMI will continue to be active investors in the audio & podcasting markets
Active Early
Stage
Investors
• Series A-B (check size $1m-$5m), leading or following; Seed ($100k – $300k)
• Covering North America, Europe, and Israel
• Currently investing out of $150m Fund III
Financial &
Strategic
• Financially-motivated, single-LP venture investor
• Provide strategic value to both portfolio companies & parent company (global
media, services, and education company Bertelsmann)
Collaborative • Syndicate friendly, co-investing with many traditional and strategic VCs
Team
Select Investments
Urs Cete
Managing Partner
Keith Titan
Partner
Sim Blaustein
Partner
Carmen Rivera
Assistant
Brendan Brits
Associate
Avinash Satish
Finance Manager
Rachel Lauren
Analyst
Audio-focused investments
Sold to Oracle
Q4 2019
Sold to The Chernin Group
Q4 2019

View Slide

BDMI’s Top Podcast Theses
1
The podcast market will continue on an accelerated growth trajectory with listener growth and tech innovation
US market size estimates upwardly revised to be $679m in 2019; first time visibility to $1B market in 2021
51% of Americans have listened to a podcast – a meaningful milestone, with room to grow
Technological innovation in advertising and non-advertising enablement will support investment in medium
2
Beginnings of internationalization in 2019 set stage for global podcast growth to be key theme of 2020
Top publishers (e.g. Wondery*, HowStuffWorks, Spotify/Gimlet) are actively expanding libraries in multiple languages, including translation of popular
English-language podcasts
Traditional media companies around the world are starting to invest in the medium
4
The podcast ecosystem remains an attractive area for venture capital investment
Landmark acquisitions in 2019 (particularly by Spotify) confirm buyer appetite – arms race only to grow with growth of overall market
Spotify’s splashy entrance into the market and an increased focus from traditional media are mounting a challenge to Apple’s de-facto hegemony, creating
paths to continued innovation in technology and content – innovative entrepreneurs will continue to shape the future of the industry
3
Traditional media will accelerate investment, cross-pollinating podcasts with other mainstream media formats
Of traditional media, a few early movers made significant investments in 2019, which should produce results in 2020 and put pressure on competitors
Leveraging their existing infrastructure and competencies, traditional media companies are well-positioned to become leaders in the podcast market
Successful podcast IP translates to other media (e.g. TV/film) & companion podcasts created around other content (e.g. HBO’s “The Chernobyl Podcast”)
Notes:
*indicates BDMI portfolio company

View Slide

Thank You to the Following Industry Leaders
BDMI leaned on expert perspectives and insights in formation of this report
Notes:
*indicates BDMI portfolio company
Ad Results Media is a leading audio & podcast
advertising agency working with numerous
Fortune 500 and unicorn companies. Clients work
with Ad Results to plan podcast campaigns, buy
at scale, and optimize based on unique goals.
ART19 enables publishers to manage all
content and ad operations in one place and
equips advertisers with services to target
audiences through smart targeting and create
customized audio messages. The company
powers hundreds of millions of podcast
downloads every month.
*
/
Audio Alliance is a Bertelsmann division committed
to the development and production of podcast
programming, drawing on the IP base across
Bertelsmann divisions. The six content divisions of
Bertelsmann Germany together launched Audio
Alliance and audio platform Audio Now in 2019.
Podsights Analytics is the first product to
connect podcast downloads with on-site activity,
giving podcasters and advertisers
unprecedented insights into the effectiveness of
their campaigns and ability to retarget
customers through best-in-class attribution
technology.
*
Wondery is the largest independent podcast
publisher in the world. Launched in 2016, and
known for its immersive podcasts, Wondery became
the fastest network to join the Top 10 ranker by
Podtrac, propelled by hit shows such as Dr Death,
Dirty John, American History Tellers, Business
Wars, The Shrink Next Door and Gladiator.
*
Bertelsmann Asia Investments (BAI) has invested
in more than 160 startups. BAI focuses on sectors
including Urbanization and Retail, Finance, China
Based Global Company, Social / Media / Content
and Tech & Infrastructure.

View Slide

Section I
Growth in the Podcast Market

View Slide

Podcasts Emerging as Mainstream Content Format
Familiarity with podcasts in the US reached 70% in 2019
Podcast Familiarity Up Sharply Since 2015 “Serial” Builds on Groundwork Laid By Early Adopters
Over half of the US population has listened to a podcast(1)
Notes:
(1) Percentage of the US population over 12 years old; source: Edison Research, “The Podcast Consumer 2019”
(2) Indexed to 100% (peak popularity of both terms); example podcast content not represented chronologically
% of US Population (Age 12+) That…
Google Searches for “Serial” & “Podcast”(2)
▪ Before 2015, the podcast market was buoyed by strong network of early
adopters with loyal followings (many had been around for nearly 10 years)
▪ True crime podcast “Serial,” developed by This American Life and
launched in Oct 2014, is often credited for elevating podcasting into
mainstream consciousness and as the first breakout hit in the medium,
building on groundwork laid by early innovators
45%
49%
70%
23%
33%
51%
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Are familiar with podcasts
Have listened to a podcast
More people searched for “Serial” in Dec 2014 than had
searched for “Podcast” in any month prior.
0%
20%
40%
60%
80%
100%
Jan '10 Jan '11 Jan '12 Jan '13 Jan '14 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19
"Podcast" "Serial"

View Slide

Among Podcast Listeners, Engagement is Active & Habitual
Weekly podcast listeners average seven podcasts per week
Steady Growth in Monthly & Weekly Listeners It’s Never Been Easier to Listen
Notes:
Source unless otherwise noted: Edison Research, “The Podcast Consumer 2019”
(1) Counterpoint Research, Liz Lee
63%
43%
0%
10%
20%
30%
40%
50%
60%
70%
2013 2014 2015 2016 2017 2018 2019
Monthly Listeners as % of "Ever Listened"
Weekly Listeners as % of "Ever Listened"
▪ An estimated
90 million
Americans are monthly
podcast listeners (63%
of people who have
ever listened to a
podcast)
▪ 62 million
are weekly podcast
listeners (43%)
▪ Weekly listeners
average seven
podcasts per week;
84% listened to
more than one
Recent technological advances have made audio consumption
possible in nearly all parts of a consumer’s day
On average, podcast listeners spend 5 hours and 39 minutes
per day listening to audio (including radio, digital radio, music, etc.)
Growing install base of on-the-go audio listeners
59%
73%
76%
78%
80%
87%
“You enjoy listening to
podcasts because…”
Can do other things while listening
Portable
Can listen wherever you are
For particular hosts
Can listen on a computer
Make you feel smarter 0
10
20
30
40
50
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019e
Global Wireless "Hearables" Sold (millions)
Global AirPods Sold (millions)
Global “Hearables” Sales by Quarter(1)

View Slide

US Advertising Growth Exceeding Expectations Differentiated Advertising Channel
▪ The US podcast advertising revenue market is expected to be $679m in 2019, 42% growth over 2018
▪ Market expected to cross the $1B mark in 2021
▪ 2018 finished 19% higher than IAB’s midyear projections. IAB also recently increased projections for
2019 and 2020 by 32% and 31%, respectively(1)
Notes:
(1) “IAB FY 2018 Podcast Ad Revenue Study”, “Full Year 2017 Podcast Ad Revenue Study”
(2) Nielsen ad effectiveness study. “Podcast Advertising Generates Up To 4.4x Better Brand Recall Than Other Digital Ads”
(3) Edison Research, “The Podcast Consumer 2019”; Percentages are of monthly podcast consumers, unless otherwise stated
(4) eMarketer 2018; Activate Tech and Media Outlook 2018
Podcast Advertising Growth is Exceeding Expectations
For the first time, visibility to reaching $1B market size in 2021
$ 106
$ 169
$ 314
$ 479
$ 679
$ 863
$ 1,045
$ -
$ 200
$ 400
$ 600
$ 800
$ 1,000
$ 1,200
2015 2016 2017 2018 2019 2020 2021
Industry Revenues (Actual)
Estimates as of June 2019
Estimates as of June 2018
In ($millions)
Podcast advertising is driving ROI for marketers
4.4x Better Brand Recall
compared to scroll ads, static ads, and pop-up ads(2)
Podcasts provide access to a
desirable demographic(3):
▪ 39% age 18-34 (vs. 28% of US pop.)
▪ 29% HHI >$100k (vs. 19% of US pop.)
▪ 53% have at least a college degree
(vs. 39% of US pop.)
54% of Listeners More Likely to Purchase
54% of respondents said they were “much more likely”
or “somewhat more likely” to consider a brand when
they hear an advertisement on a podcast(3)
61% of Listeners Have Purchased
a product or service after hearing a podcast ad(4)

View Slide

Many Global Markets with Active Podcast Engagement
Numerous publishers investing in internationalization and translation of podcast content
China – The largest market size, but apples-to-orange comparison
▪ Market dominated by Ximalaya FM
▪ Formats and content are unique to other global trends (overweighted in
educational content, paid models)
Latin America – Four fastest growing podcast markets are Hispanic
▪ Widely spoken languages → content relevant to large population without
need for translation
▪ Spotify investing in the region – now more than 20% of MAUs from region
Reuters Institute study surveying 40 countries on six continents found
36% of online respondents had listened to a podcast in the last month. In
the under 35 years old demographic, this number was 50%(1).
Notes:
Source, unless otherwise identified: Reuters Institute Digital News Report 2019
(1) Surveys were conducted online. Per Reuters Institute, “online samples will tend to underrepresent the consumption habits of
people who are not online (typically older, less affluent, and with limited formal education). In this sense it is better to think of
results as representative of online populations.”
Europe – Building blocks in place for hyper-growth
▪ Podcast usage outpacing revenue generation
▪ High adoption of programmatic digital audio advertising
▪ However, scaling challenges from language / translation
South Korea – Nearly a decade of popularity generating loyal usage
▪ Higher % listenership than US (53% vs. 35%)
▪ Technologically advanced society → digital audio & streaming adoption
▪ Momentum behind digital advertising market, growing 14% YoY

View Slide

European Podcast Market Poised for Rapid Development
High levels of internet connectedness already bringing six countries with 14m+ listeners to the table
Notes:
(1) Reuters Institute Digital News Report 2019; these countries are Spain, Italy, Germany, France, Poland, and United Kingdom
(2) “Audio Stream to Revenue Stream,” Xaxis & IAB Europe
(3) “Podcasting in Europe: Is an American Trend Crossing the Atlantic?” European Journalism Observatory, Rachel Stern, Feb 23, 2018
(4) eMarketer, “Digital Ad Spending 2019”
* indicates BDMI portfolio company
▪ Opportunities:
▪ High levels of internet connectedness, mobile usage, and
existing engagement in audio (radio & digital)(1)
▪ 6 countries that each have 14m+ monthly podcast listeners(1)
▪ Robust adoption of audio advertising: 74% of advertisers
spend on audio channels, and 59% do so programmatically,
though typically as low percentages of total ad budget(2)
▪ 25-30% of population in major European economies are
monthly listeners (Spain highest at 39%)
▪ Risks:
▪ Language barriers are a headwind for scalability
▪ Concentrated market of media creators and tighter regulation
of media vs. US might lead to slower adoption by long-tail
creators(3)
▪ European digital advertising market size trails US(4)
…Though Market is Still Largely Localized
“Wondery* Launches ‘Dr. Death’
Podcast in Seven Languages in
Markets Worldwide” –
Variety, Aug 2019
Early Movers Among Top US Publishers
are Investing in European Market
2018 Digital Ad
Market (billions)
% of Advertising
on Digital
2023e Digital Ad
Market (billions) 5 Yr CAGR
United States $ 108.6 48.6% $ 201.8 13.2%
United Kingdom £ 13.2 63.8% £ 20.7 9.4%
Germany € 6.6 34.3% € 9.9 8.4%
France € 4.3 37.0% € 7.2 11.0%

View Slide

Significant Momentum in German Podcast Market
33% of the German population has listened to a podcast, compared to 51% in the US
Notes:
Source: Edison Research & RTL Radio, “The Infinite Dial 2019 – Germany”
Engagement Consumption Habits
51%
32%
22%
33%
17%
10%
0%
10%
20%
30%
40%
50%
60%
% Ever Listened % Listen Monthly % Listen Weekly
US Germany
11% 12%
29%
48%
11% 12%
31%
46%
0%
10%
20%
30%
40%
50%
60%
5+ Years 3-5 Years 1-3 Years <1 Year
US Germany
While behind US levels, German podcast
consumption is showing strength in the early days
% Population Podcast Engagement
% Podcast Listeners That Have Listened For:
90%
64%
49%
43%
37% 37%
85%
32%
27%
11%
34%
21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
At Home In a Car Walking Exercising Public Transit At Work
US Germany
US consumers
are more likely
to listen while
on-the-move.
Both markets experiencing swells of new listeners
% That Have Ever Listened While:
Despite prevalence of
English-language
content, German is the
most listened-to
language. Listener
growth expected to
accelerate following
recent investments in
German content.
Languages to Listened To:
German,
62%
English,
11%
Both
Equally,
22%
Other, 5%
Select German Hits
Gemischtes
Hack
Comedy
Fest &
Flauschig
Comedy
Paardiologie
Relationships
Verbrechen
True Crime
Stern Crime
Spurensuche
True Crime

View Slide

Podcast Market in South Korea is Well-Established
27m monthly podcast listeners following nearly a decade of familiarity
Notes:
(1) Reuters Institute Digital News Report 2019
(2) “How South Korea became the world’s podcasting capital,” Ozy Media, Colin and Peleschuk, June 2019
(3) Musically – South Korea Market Profile
(4) “Digital ad market overwhelms broadcasting ads in Korea in 2018,” Maeil Business News Korea
▪ Opportunities:
▪ 27m (53% of the population) are monthly podcast listeners – higher percent than US and any of the 10 largest European countries(1)
▪ 20% of the population identifies as “avid fans” (vs. 12% in the US) and the average listener listens for 2.5 hours per day(2)
▪ 8.5m South Korean citizens are paying subscribers to a music streaming service(3)
▪ Compared to tech-savvy neighbor Japan, monthly listenership is much higher (53% vs. 23%)
▪ Nearly a decade of familiarity: Naneun Ggomsuda, a political comedy podcast that aired around
the 2012 election, was the first hit in South Korea
▪ Risks:
▪ Digital advertising market ($3.7B) is still small relative to US and Europe, but growing quickly
(14% YoY), driven by spend on mobile(4)
▪ Local platform claims to have 50% of market share (by listenership) – platform
concentration may be headwind to international companies trying to enter market
Naneun Ggomsuda
aired April 2011 –
December 2012

View Slide

Chinese Podcast Market Dwarves All Others, Though Key Differences
$7.3B market size built on transactional revenue for educational courses, audiobooks
Notes:
(1) “FOMO in China is a $7 Billion Industry,” Marketplace, Jennifer Pak, Sep 13, 2018
(2) “The Chinese “podcast” industry isn’t really podcasting as Americans think of it…,“ Nieman Lab, Nicholas Quah, May 2019
(3) Lizhi FM F-1, filed Oct 28
▪ Opportunities:
▪ Market size estimated at ~$7.3B though includes other audio content outside of US-like podcasts
(e.g. “Pay for Learning”, audiobooks)(1)
▪ Market dominated by Ximalaya FM, combining hosting services, program distribution, and RSS
subscriber applications in one platform – an “audio YouTube”(2)
▪ “Pan-audio Entertainment” market estimated at $28.6B (compared to $51.4B in the US), growing at
12.6% CAGR from 2018A-2023E (9.5% US over same period)(3)
▪ Transactional business models are the norm: subscription, pay per use, and tipping
▪ Diversity in top five podcast categories: 1) Culture, 2) Kids & Family, 3) Self-growth, 4) Finance, 5) Skills(1)
▪ Risks:
▪ Government regulation: unilateral ability to tinker with supply
▪ Dominance of few platforms can be unfavorable to creators(2)
Top Players in Chinese
Podcast Market

View Slide

Latin American Markets Still Small, but Listenership Rapidly Expanding
Four fastest growing podcast markets are Spanish speaking countries
Notes:
(1) “Top Growing Podcasting Countries – March 2019,” Voxnest, Apr 2019
(2) “Univision: The Data Reveals A Growing Opportunity For Spanish-Language Podcasts,” InsideRadio, Mar 2019
(3) Spotify Form 20-F, Feb 2019
▪ Opportunities:
▪ Spanish is the fourth most-spoken language in the world – Spanish content maintains relevance across many countries
▪ The top four fastest growing countries for podcast listenership are Spanish speaking (Chile, Argentina, Peru, Mexico)(1)
▪ 4.8m US-based Hispanics listen to podcasts; 61% say they listen to more podcasts than they did a year ago(2)
▪ Spotify, armed with strong Spanish language content offerings, has built foothold in the region; Latin America was the company’s fastest
growing geography in 2018 (22% of total MAUs, 35% growth YoY)(1)(3)
▪ In Brazil, monthly podcast consumption on Spotify has been growing by 21% on average since Jan 2018(4) and 51% of the “online”
population listen to podcasts monthly(5)
▪ Risks:
▪ Digital advertising markets are still small, particularly in audio, and are among the lowest CPMs globally(1)
▪ Spotify acknowledges challenges monetizing their free-tier, ad-supported user base in Latin America(3)
▪ Limited monetization opportunities and funding sources constrict content supply relative to availability of creative talent(6)
4) “Podcast market booms in Brazil,” Angelica Mari, Nov 2019
5) Reuters Institute Digital News Report 2019
6) “The keys to starting a podcast business in Latin America,” Erick Yañez Navarro, Apr 2019

View Slide

Two Growth Vectors Expected to Drive Progress in Podcast Market
BDMI believes the podcast market will continue to grow because…
Audio content consumption is
nowhere near saturation and
obvious gaps in consumer
education exist
Technological advancements
in podcast advertising driving
demand from marketers +
untapped revenue streams in
direct-to-consumer
monetization provide upside

View Slide

Notes:
Source unless otherwise noted: Edison Research, “The Podcast Consumer 2019”
(1) “Podcasts Are Getting Shorter”, Megaphone, July 15, 2019
Audio content consumption is nowhere near saturation and obvious gaps in consumer education exist
53 million Americans have heard of
podcasts but never listened to one
Among monthly podcast listeners, many
are new to the format and consuming
more now than ever
Of monthly podcast listeners:
41%
More
45%
<1 Yr
46%
Same
30%
1-3 Yrs
13% Less 25%
3+ Yrs
0%
20%
40%
60%
80%
100%
Compared to One Year Ago,
Consuming Podcasts
Number of Years Listening
to Podcasts
Commonly cited reasons for not listening to podcasts reveal
market opportunity and a need for consumer education
Commonly Cited Reason
“Listening to podcasts can use up
a lot of data”
41% Most podcasts are downloaded at home
“I don’t have a podcast app on my
phone”
41%
iOS and Android phones have native podcast
apps
“Podcasts are too long” 40%
More availability of shorter podcasts: 34% of
podcasts are <30 min vs. 16% in ’18(1)
“You have to pay to subscribe to
podcasts”
38%
Paid podcast services are new and represent
small percent of market
“I don’t know how to find podcasts” 35%
Solvable with market education / better
discovery
“I don’t know what a podcast is” 22%
Solvable with market education
“There aren’t any podcasts about
music”
16%
Many top publishers produce shows about
music, including NPR, iHeartMedia, & Spotify
% of Respondents Reality

View Slide

Notes:
(1) Source: Nielsen & Hackernoon, “State of Podcasts 2018”
Upside available from adtech advancements + untapped revenue streams in D2C monetization
Unscalability of podcast ad
creative…
Podcast adtech trails
sophistication of
established channels…
Advertising-only
models leave money
on the table…
Challenges: Current impediments to podcast market growth
… dynamic creative,
synthetic editing tools, &
podcast best-practices
… podcast technology
enabling greater ROI for
and thus demand from
advertisers
… major players and new
entrants attempting to
capitalize on trend (early
results inconclusive)
$ 0.72
$ 0.57
$ 0.24
$ 0.13
$ 0.11
$ 0.01
Newspapers
Magazines
Internet
TV
Radio
Podcasts
Average Revenue per
Active User per Hour(1)
Monetization Lags Other Ad Channels 1 2 3
1 2 3
Opportunity: Recent tech advancements / industry activity illuminate positive trends

View Slide

Notes:
Upside available from adtech advancements + untapped revenue streams in D2C monetization (cont.)
▪ Current ad model is high touch
▪ Over 50% of podcast ads are still edited-in / baked-in
▪ Two-thirds of ads are host-read, one-third are pre-produced
Unscalability of
podcast ad
creative
Dynamic creative,
synthetic editing
tools, & podcast
best-practices
1
1
▪ Dynamic creative has potential to scale podcast advertising as
it did for display
▪ Synthetic audio tools enabled scaled content creation
▪ With hindsight, podcasts can avoid Web 2.0 pitfalls e.g. oversaturation &
non-nativeness – podcast advertising best-practices already emerging
“The new standard for data-
driven creative”
*

View Slide

Benefits of Web / Display
▪ Audience Analytics
▪ Attribution
▪ Dynamic Targeting
▪ Interactivity
Podcast adtech
trails sophistication
of established
channels
Podcast technology
enabling greater
ROI for advertisers
2
2
Example podcast adtech developments
▪ Dynamic ad insertion, unlocking inventory in catalogs – 49% of ad revenue came from dynamically inserted ads in 2018(1)
▪ programmatic offerings grow the advertising pie and reduce friction in ad sales
▪ cross-platform attribution for podcast advertising
▪ competitive intelligence
▪ interactive audio advertising
Inherently difficult in
audio formats
*
Notes:
(1) Source: “IAB FY 2018 Podcast Ad Revenue Study”
*

View Slide

Early indications of consumer willingness to pay:
▪ Membership Models
▪ Live / Events
▪ Merchandise
Advertising-only
models leave
money on the table
Major players and new
entrants attempting to
capitalize on trend(1)
3
3
Notes:
(1) Early results are inconclusive. Well-publicized challenges with Luminary launch in 2019 not thought to be indictment of market opportunity.
*
Content:
Non-Ad Revenue
Enablement:

View Slide

Section II
The Podcast Listener

View Slide

Podcast Listeners Are Disproportionately Young, Wealthy, & Educated
71%
10% 11%
8%
59%
12%
17%
12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
< $75k $75k - $100k $100k - $150k $150k+
Demographics by Annual Income
32%
26%
19%
20%
20%
27%
25%
28%
0%
5%
10%
15%
20%
25%
30%
35%
High School or
Less
Some College Four-Year
College Degree
Some Grad
School or
Advanced
Degree
Demographics by Education Level
9%
28%
32%
31%
10%
39%
35%
16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Age 12 - 17 Age 18 - 34 Age 35 - 54 Age 55+
Demographics by Age
Notes:
Source, unless otherwise noted: Edison Research, “The Podcast Consumer 2019”
(1) Source: Stitcher, as presented at the IAB 2019 Podcast Upfront, Oct 2019 Most over-indexed demographics
31% of new listeners (<1yr) are
under 24 years old(1)

View Slide

Podcast Listeners are Curious & Seeking Entertainment
“Learn New Things” & “Be Entertained” are top two reasons given for podcast consumption
% of Monthly Podcast Listeners That Have Listened In Order To:
Notes:
Source: Edison Research, “The Podcast Consumer 2019”
24%
37%
47%
51%
60%
71%
74%
Have Companionship
Escape
Feel Inspired
Relax
Stay Up-To-Date With Latest Topics
Be Entertained
Learn New Things

View Slide

Listener Profiles Illuminate Advertising Value and Market Growth Potential
▪ Despite previous challenges identifying unique
listeners, early growth in the podcast advertising
market was buoyed by the fact that the medium
reaches a high ROI demographic
▪ Improvements in technology are making these
general demographic observations less relevant
for advertisers as high-value, hyper-targeted
audience segments are reachable
Takeaways
Market Growth
Advertising Value
▪ Early demographic trends in podcasting reflect
usage by groups that are typically early adopters of
new technologies
▪ Podcast discovery has been predominantly self-
researched or word-of-mouth, effectively
perpetuating these demographic trends until new
discovery solutions arise(1)
▪ As the medium matures, particularly around content
offerings and discovery mechanisms, podcasting
will democratize and appeal to a larger base of
potential listeners
▪ Growth is coming from non-core
demographics (e.g. among new listeners, 65%
female, 30% non-white(2))
Notes:
(1) Source: Edison Research, “The Podcast Consumer 2019”
(2) Source: Stitcher, as presented at the IAB 2019 Podcast Upfront, Oct 2019

View Slide

Section III
The Podcast Creator

View Slide

Variety in the Podcast Content Market Appeals to Wide Range of Listeners
Listeners want a diversity of show types, and savvy publishers are supplying
Over 700k Active Podcasts
With a variety of genres(1)
Genre
% of Weekly
Listeners
Consuming / wk
Comedy 36%
News 23%
Society & Culture 22%
Sports 15%
True Crime 12%
Arts 11%
Business 10%
Religion &
Spirituality
10%
TV & Film 8%
Science 6%
Notes:
(1) Source: Edison Research, “comedy, news, and society and culture podcasts most listened-to genres in podcasting”; (2) PodTrac; * indicates BDMI portfolio company
The most popular shows are
general interest / news…
… and popular new shows are mix of
true crime, comedy, and culture.
Top 10
Podcasts
by Total
Audience –
Nov 2019(2)
Top 10 New
Podcasts of
2019
by Avg
Downloads
/ Episode(2)
Podcast Publisher
1 The Daily NYT
2 Up First NPR
3 Stuff You Should Know iHeartRadio
4 This American Life This American Life
5 Ben Shapiro Show Daily Wire
6 Pardon My Take Barstool Sports
7 Call Her Daddy Barstool Sports
8 Wait Wait… Don’t Tell Me NPR
9 Planet Money NPR
10 NPR Politics Podcast NPR
Podcast Publisher
1 The Shrink Next Door Wondery*
2 The Ron Burgundy Podcast iHeartRadio
3 Over My Dead Body Wondery*
4 Man in the Window Wondery*
5 The Thing About Pam NBC News
6 Bad Batch Wondery*
7 White Lies NPR
8 Dolly Parton's America WNYC
9 The Mysterious Mr. Epstein Wondery*
10 Chelsea Handler: Life Will… iHeartRadio
Top publishers are a mix of radio,
traditional, digital, and podcast-
first publishers
Top 10 Podcast Publishers – Nov 2019(2)
Publisher
Publisher
Category
US MAUs
(millions)
Active
Shows
1 NPR Radio Publisher 22.2 67
2 iHeartRadio Radio Publisher 21.2 327
3 New York Times Traditional Media 10.5 10
4 Wondery Podcast-First 9.9 82
5 PRX Radio Publisher 9.1 81
6 Barstool Sports Digital Publisher 6.8 32
7 ESPN Traditional Media 5.8 62
8 WNYC Studios Radio Publisher 6.6 54
9 NBC News Traditional Media 5.5 27
10
This American
Life / Serial
Radio Publisher 4.7 2
*

View Slide

Opportunity for Traditional Media to Establish Leadership in Podcasting
Outside of a few key exceptions, traditional media investment in podcasts still exploratory
To date, podcast content creation has been dominated by radio, podcast-first,
and indie publishers. In general, traditional media companies have not converted
existing audiences to audio audiences at scale, and investment has been mostly
exploratory. However, with visibility to a market size above $1B, certain early
movers are laying the ground work ahead of material revenue opportunities.
Traditional media’s involvement in podcasting typically takes the form of either:
1) Repurposing existing content – news, talk show formats translate well across media formats; not
always 1:1 copy, but demand and popularity are proven; 2) Companion podcasts – allows traditional
media companies to own more of the conversation around their existing content with analysis, behind-
the-scenes access, etc. (e.g. “The Good Place: The Podcast” by NBC)
Some also employ podcasts for validating IP (e.g. The Weekly TV show by the New York Times)
Notable exceptions to these trends in the US include The New York Times, ESPN, and NBC – each
have successfully translated content into audio formats and created unique programming specifically for
audio, and listeners have followed (all are among top ten publishers in the US).(4)
Relatively little investment in the medium by peers presents an opportunity for a traditional media player
to establish itself as a leader early in the market’s evolution. Recent announcements reveal a recognition of
attractive trends and a doubling down by a few traditional players (e.g. NBC News in partnership with Wondery*(1),
UCP gets into podcast creation(2), WarnerMedia building podcast ad sales team and stable of shows(3)).
Notes: (1) “NBC News Plans to Double Original Podcasts in Deal with Wondery,” AdWeek, Kelsey Sutton, Oct 2019; (2) “UCP Gets Into Podcasting,” Deadline, Nellie
Andreeva, Nov 2019; (3) “WarnerMedia sets up podast ad sales team,” TheDrum, Andrew Blustein, Oct 2019; (4) PodTrac; * indicates BDMI portfolio company
*
Example: NBC Podcast Strategy
Audio replica
of weekly TV
show
Mix of repurposed
and original content
Companion
podcast to
popular TV show

View Slide

Bertelsmann in Podcasting
Market leadership in Germany born from ability to leverage Bertelsmann IP and infrastructure
Bertelsmann division, Audio Alliance, is a production company developing all podcasts
and audio-on-demand offerings from the six Bertelsmann Content Alliance partners,
Mediengruppe RTL Deutschland, RTL Radio Deutschland, UFA, Verlagsgruppe
Random House, Gruner + Jahr, and BMG.
Audio Alliance works with Bertelsmann divisions to leverage existing IP and network
personalities into high quality audio programming. On the back of traditional media
infrastructure, Audio Alliance is the largest content producer in Germany after
launching in May 2019.
In March 2019, RTL Radio Deutschland launched Audio Now, a consumer
offering distributing the best podcasts and audio content from German radio
/ digital audio. Audio Now is among the top distributors of podcasts in
Germany. An advantage in understanding consumer listening habits helps
inform Audio Alliance’s data-driven content creation strategy.

View Slide

Clear Trends Emerging in Non-Advertising Business Models
Podcast creators already monetizing through Direct to Consumer and Licensing models
1 2
Direct To Consumer
▪ Premium content
▪ Donations / tips
▪ Products / merch
▪ Events
Licensing
▪ Exclusive platforms
▪ Multimedia

View Slide

Devoted Audiences Enable Direct to Consumer Monetization
Each of four main direct to consumer monetization channels show early indications of traction
Premium
Content
Donations /
Tips
▪ Offer first-access or bonus content on either subscription or a la carte model
▪ Can be done either in partnership with platforms (e.g. Acast Access, Glow.fm) or with private RSS
feeds via horizontal audience management software (e.g. Patreon, Pico)
▪ 31% of podcast listeners, and 46% of those that listen to at least one hour per week, have paid to
access podcast content behind a paywall(1)
Crime Junkie bonus episodes
available for $5 / month
▪ Audiences directly donate to or tip their favorite creators via donation-focused channels (e.g.
GoFundMe / Kickstarter, Patreon); precedence for this model historically (e.g. public radio) and in
new digital channels (e.g. tipping streamers on Twitch)
▪ Podcasting is Patreon’s 2nd largest category(2) and 13k podcasters use Patreon for monetization(3)
▪ 33% of podcast listeners, and 48% of those that listen to at least one hour per week, have donated
to a podcast or podcast host(1)
Products /
Merch
▪ Brand-building products and merchandise, e.g. clothing, drinkware, posters
▪ As audiences “identify” with podcast content, they have shown propensity to acquire merchandise
as they do for favorite brands in other categories → organic marketing & publicity for creators
▪ Many podcasts offer merch through ecommerce platforms e.g. Shopify
▪ 37% of podcast listeners, and 53% of those that listen to at least one hour per week, have
purchased podcast related merchandise(1)
Notes: (1) BDMI survey powered by Suzy – see next page for detail; (2) “How Patreon is Bringing Podcasters Closers to Their Audience,” Forbes, Joshua Dudley, January 2019; (3) “Podcasting & Audio Market Map,”
Andreessen Horowitz; (4) “Why live podcasts are becoming a big deal this year,” Digiday, Max Willens, March 2017
Events
▪ Formats include live podcast recordings, meet & greets, festivals, audience game shows, etc.
▪ Ex: Slate has hosted live Political Gabfests since 2009 and reliably sells up to 1,200 tickets/show(4)
▪ Large scale podcast festivals incl. LA Podfest, Midroll’s Now Hear This and WNYC’s Werk It
▪ 30% of podcast listeners, and 39% of those that listen to at least one hour per week, have attended
an event related to a podcast or the podcast industry(1)

View Slide

Among Most Active Listeners, Strong Signals of Willingness to Pay
BDMI used Suzy to survey 5,000 respondents regarding podcast listening and spending habits
Have you ever donated
money to a podcast or
podcast host? (For example,
through platforms such as
GoFundMe, Patreon,
Kickstarter, etc.)
Have you ever attended an
event related to a podcast or
the podcast industry? (For
example, a live recording, an
event with podcast
personalities, a podcast
industry festival/convention)
Have you ever purchased
merchandise related to a
podcast? (For example, a t-
shirt, mug, stickers, etc.)
Have you ever paid money to
access podcast content
behind a paywall? (For
example, as a subscription or
through a one time payment)
Notes: Survey respondents randomized, not a representative sample of US population
n=2500 n=1434 n=793
Survey powered by…
Suzy is a real-time consumer
intelligence platform that
connects you directly to your
target audience to get instant
feedback on any business
decision, big or small.
n=2500 n=1426 n=788 n=2500 n=985 n=550 n=2500 n=1415 n=779
Respondents Who Have
Ever Listened to a Podcast
Respondents Who Listen to
>1 Hours per Week
Respondents Who Listen to
>2 Hours per Week
30.5%
33.3%
30.0%
37.4%
45.7%
48.2%
39.0%
53.3%
51.6%
54.6%
42.0%
58.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%

View Slide

Quality Podcast IP & Talent Generating Demand from Platforms & Publishers
Exclusive Platforms Multimedia Licensing
Strong podcast IP generating demand from other media formats
Takeaways: scripted, narrative programming and
personality-driven shows are in highest demand
Notes: (1) “The Podcast TV Check-in,” The Ringer, Alison Herman, November 2018
First example in the podcast-to-television pipeline(1) – an
absurdist comedy talk show, first aired in 2012, based on the
cult-favorite podcast
Podcast publisher, Wondery*, has had 10 shows
ordered to series or in active development,
including Dirty John (second season announced
in May 2019)
Other
notable
examples:
TV / Film
Books
Audio platforms are paying creators for exclusivity
“Apple Plans to Bankroll Original Podcasts to Fend
Off Rivals,” Shaw and Gurman, Bloomberg, July 2019
“With Big Stars and Paid Subscriptions, Luminary
Aims to Be the Netflix of Podcasts,” Brooks Barnes,
New York Times, March 2019
Luminary has raised $100m to pursue deals for
celebrity-driven programming; rumored to be paying
some creators well north of $1m.
“Amy Schumer Takes Her Raunchy Humor to Spotify
in Podcast Deal” Lucas Shaw, Bloomberg, May 2018
Spotify reportedly offered the comic over $1m for
rights to “3 Girls, 1 Keith”

View Slide

Best Practices for Podcast Creators
1
2
3
4
5
The podcast market is early, and as such there are few tried-and-true formulas for content creation. Therefore,
be flexible: experiment, track, and adjust. There is room in the market for both high-production value (scripted,
narrative, highly produced) and easy-to-produce (e.g. conversational / unscripted) content.
Leverage your existing marketing muscle – social media is powerful, promote podcasts on other podcasts you
are connected to, use traditional press channels. Leveraging the effects of a network (e.g. The Ringer,
Stitcher/Midroll, Wondery*) or including influential talent on the podcast are good ways to grow marketing reach.
Utilize third party data to select / develop content based on your audience and what others are listening to. First
party data is a potential differentiator.
Advertising is still the best channel for scaled monetization; ~25k downloads per episode to attract interest from
national brands, but smaller scale advertisers and D2C channels often available from beginning. In pursuing
D2C channels, maintain brand voice and / or use D2C channels as a brand extension and marketing channel.
Intuitively, good, in-demand content remains the best way to grow a listener base. Biggest focus should be on
creating content listeners want to hear – know your audience.
* Indicates BDMI portfolio company

View Slide

Section IV
The Podcast Advertiser

View Slide

Scalable Advertising Models are Growing Year Over Year
Host-read ads still dominate podcasting advertising with 63% of the market
Notes:
Source, unless otherwise noted: “IAB FY 2018 Podcast Ad Revenue Study”
(1) “Why Listeners Respond to Podcast Ads,” Backyard Media, December 2017
1. Host-Read Ads
▪ Ads read by the podcast host natively within the podcast’s
content – draws from old radio practices
▪ Host personality injected into the ad, sometimes comes with
endorsement – drives strong ad performance(1)
▪ Despite scalability challenges, still most common ad format
2. Pre-Produced Ads
▪ Podcast publisher / host has some creative control
▪ Typically recorded in standard lengths (:30, :60, :90) and later
edited into podcasts – scalable and unlocks library value
3. Supplied Ads
▪ Pre-recorded ads supplied by the advertiser / agency without
creative / production input from podcast team
▪ May have been created for radio broadcast or intended solely
for podcast
▪ A small portion of all ads, but growing quickly as advertisers
and agencies focus on podcasts
32.7%
66.9%
0.5%
2017
35.0%
63.3%
1.7%
2018
Host-Read
Pre-Produced
Supplied
Revenue Share by Ad Type

View Slide

Improvements in Analytics Create Less Reliance on Direct Response Ads
IAB survey indicates direct response ads make up a majority, though decreasing, share of campaigns
1. Direct Response
▪ Ads with call-to-actions (often a promo code or unique URL)
as a mechanism for tracking and measuring engagement
2. Brand Awareness
▪ Principal goal to raise brand awareness – no specific call-to-
action for tracking
3. Branded Content
▪ Podcast content paid for and generated by the advertiser
▪ Ex: “The Message” by GE, “#LIPSTORIES” by Sephora
Notes:
Source: “IAB FY 2018 Podcast Ad Revenue Study”
Revenue Share by Campaign Type
Advertisers tending towards brand awareness and branded
content as understanding of audiences & reach improve
25.4%
73.0%
1.5%
29.2%
64.2%
6.5%
38.2%
51.6%
10.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Brand Awareness Direct Response Branded Content
2016 2017 2018

View Slide

Enterprise-Scale Brands and Agencies Beginning to Invest in Podcasts
Market built on direct response advertising now expanded to include different types of marketers
$ -
$ 100
$ 200
$ 300
$ 400
$ 500
$ 600
$ 700
$ 800
2015 2016 2017 2018 2019
Phase I
Early advertising market built nearly
exclusively on unique URLs and promo
codes from direct response /
performance marketers
Many early advertisers were well-
capitalized / venture-backed digitally-
native brands, though not exclusively
Phase II
Influx of advertisers seeking lift on brand
recognition KPIs
Larger brands (F500) paying more
attention, following direct response
advertisers’ “smart money”
Deep pocketed marketers can afford to
“explore” channel while still investing
meaningful capital
Podcasting a defense mechanism for
incumbent brands versus upstarts
Traditional advertising agencies feeling
pressure to be involved
Industry Market Size ($ in millions)

View Slide

Key Developments in Data Standardization Have Brought Industry Forward
December 2018
IAB Tech Lab rolls out podcast
measurement compliance certification
program
December 2017
Apple releases analytics service for show
creators after announcing at developer
conference over the summer and years of “black
box” secrecy – publishers finally able to report
listener engagement, create new advertising
products (postroll, longer ad slots proven viable),
make editorial adjustments
December 2018
NPR’s Remote Audio Data system
launches as open source mobile SDK
December 2017
IAB releases Podcast Measurement
Guidelines 2.0, clarifying definitions of
audience and downloads
September 2016
IAB, in partnership
with 23 industry
players, creates the
first standardized
definition of industry
terms re content
delivery, ad delivery,
ad tracking, and
audience. Credited
with leveling the
playing field among
advertisers and
creators.

View Slide

Why Advertise in Audio?
It Works, and
It Works Well
Channel is
Rich in
Authenticity
Active
Consumption
for Hard-to-
Reach
Audience
In Nascent
Stages, the
Industry Will
Continue to
Optimize
High Value
Advertising
Channel
4.4x better brand
recall compared to
scroll ads, static ads,
and pop-up ads(1);
54% of listeners more
likely to purchase(2);
61% of podcast
listeners have
purchased a product
or service after
hearing a podcast
ad(3).
Podcast listening is an
active, opt-in
experience. Result is
attentive audience.
Main demographics in
podcasting are likely to
be ad-free in other
media. 78% of podcast
listeners don’t mind
ads because they
know sponsors
support the podcast(3).
Lessons learned from
Internet 2.0
advertising, with
industry new enough to
continue to refine and
set best practices –
e.g. keeping ad loads
low generating more
value. Opportunity for
early-mover brands to
take advantage of
learnings.
Personality driven
medium = natural
influencer advertising
models and principles.
Audio is “emotionally
transparent”(4).
Notes:
(1) Nielsen ad effectiveness study. “Podcast Advertising Generates Up To 4.4x Better Brand Recall Than Other Digital Ads”
(2) Edison Research, “The Podcast Consumer 2019”
(3) Stitcher, as presented at the IAB 2019 Podcast Upfront, Oct 2019
(4) “Demystifying the Podcast Ecosystem,” panel discussion by AdResults Media, Sep 2019

View Slide

Best Practices for the Podcast Advertiser
1
2
3
4
5
In direct response advertising, repetition and taking the time to drive messaging home can lead to better
conversion. However, strike the right balance – long ads for the sake of length may annoy listeners.
Commit enough resources to meaningfully learn from results – practice A/B testing, hone the message. The
best campaigns are a mix of host-read ads and dynamically inserted ads – both can inform each other.
When the brand and content align, a campaign has a better chance of performing. Know the audience – not all
sports fans are comedy fans, not all business-news enthusiasts are entrepreneurs.
Know your goals for an advertising campaign. What KPIs will you track? Do the benefits of host-read ads
outweigh the potential risks of letting go of the messaging?
For performance marketing, make sure the deals are compelling enough to drive conversion. Be smart about
attribution measurement.

View Slide

Section V
Podcasts & the Capital Markets

View Slide

0
5
10
15
20
25
30
35
$ -
$ 20
$ 40
$ 60
$ 80
$ 100
$ 120
$ 140
$ 160
2013 2014 2015 2016 2017 2018 2019
Announced Aggregate Funding Amount Number of Deals
Venture Funding Increasing, But Concentrated in a Few Bets
In 2019, more podcasting companies raised venture or growth capital than any previous year
Announced
Funding
Amount ($m)
Number of
Deals
Podcast Venture Activity by Year(1)
▪ Venture activity in podcasting is
growing, but still small relative to other
categories
▪ Total venture investment limited by
current market size – VCs interested
in the category are making bets on
accelerated market growth
▪ Following acquisitions such as Stitcher,
Gimlet, and Anchor, few independent
players with significant venture
funding remain
▪ Total investment is concentrated
and the landscape is still young –
67% of announced funding in 2019
went to Luminary and Acast; only 5
deals were over $10m
Notes:
(1) Source: CBInsights; includes global venture and growth capital investments made in podcast companies
*
*
*
*

View Slide

Select Podcast / Audio M&A Transactions
In a podcast arms race, major audio platforms have been the biggest spenders
Notes: (1) Source: CBInsights, press releases, public filings
Acquirer
Acquired
Companies
Transaction Details Commentary
▪ Gimlet acquired in Feb 2019 for $230m
▪ Anchor acquired in Feb 2019 for $170m
▪ Parcast acquired in Mar 2019 for $56m
▪ Spotify doubling down on podcasting and originals as way to lower
average content cost
▪ Most aggressive acquirer in 2019, buying across whole value chain
▪ Publicly acknowledged big budget for more acquisitions
▪ HowStuffWorks acq. in Sep 2018 for $55m
▪ Jelli acquired in Nov 2018
▪ RadioJar acquired in Feb 2019
▪ HowStuffWorks was an early podcast content network → synergistic
pairing with iHeart's digital audio assets
▪ Following bankruptcy in 2018, podcast capabilities in content and tech
have helped lift iHeart’s top and bottom lines
▪ Remaining 55% of Cadence13 acquired in
Aug 2019, representing EV of $50m
▪ Pineapple Street Media acquired in Aug 2019
for $18m
▪ Acquired capabilities in production (incl. partnerships with leading
media brands) and services for creators (auddev, advertising)
▪ The three companies had more than 150m downloads in Q2 2019
▪ AdsWizz acquired in Mar 2018 for $145m ▪ Pandora publicly confirmed commitment to programmatic audio adtech
and podcasting at time of acquisition
▪ PRX and PRI merged in Aug 2018 ▪ Merger of two public radio networks in recognition of podcast tailwinds;
no money changed hands, but $10m growth capital from WGBH
▪ Pocket Casts acquired in May 2018 ▪ Partnership among leading publishers to acquire podcast app –
recognition of industry need for better discovery and UX
Major Audio Platforms
Spotify made biggest splashes in podcast M&A markets in 2019

View Slide

Select Podcast / Audio M&A Transactions (cont.)
Traditional media companies have made limited number of acquisitions; EW Scripps the exception
Acquirer
Acquired
Companies
Transaction Details Commentary
▪ Midroll acquired in Jul 2015 for $60m
▪ Stitcher acquired in Jun 2016 for $4.5m
▪ Triton acquired in Oct 2018 for $150m
▪ Omny Studio acquired in Jun 2019
▪ Acquisitions across the value chain: content, technology (ad serving /
analytics), ad sales, distribution
▪ Stitcher is primary podcast brand and parent to Midroll, others
▪ Acquisition of Midroll included Earwolf, which merged with The Mid Roll
in 2014 to form Midroll Media
▪ Heartbeats acquired in Sep 2019 ▪ Danish magazine company acquired one of Denmark's leading
producers of podcasts
▪ Pacific Content acquired in May 2019 ▪ An existing radio broadcaster, Rogers acknowledges emergence of
podcast format in audio landscape and desire to be aggressive in trend
▪ AudioHQ acquired Oct 2017 ▪ UK-based media company acquired US-based digital audio advertising
sales company
Traditional Media
As traditional media companies seek to grow podcast market share, additional acquisition activity should follow

View Slide

Podcast-first companies have made strategic acquisitions for product development or market share
Acquirer
Acquired
Companies
Transaction Notes Commentary
▪ BirchSound acquired in Dec 2019 ▪ Deal accelerates move into South Korean podcast ad sales market –
BirchSound has significant share of country’s existing market today
▪ Lyrebird acquired in Sep 2019 ▪ Editing toolkit for podcasters with VC backing acquires AI capabilities
through Lyrebird
▪ Early days for AI-enabled audio content, but likely to become important
tech advancement in scaling creation
▪ Pippa acquired in Apr 2019 ▪ Supports Acast’s international expansion
▪ Opens platform up to consumers and small scale hosting – long-tail
monetization had been on roadmap
▪ Spreaker acquired in Jan 2018
(Spreaker and BlogTalkRadio merged in
Aug 2017)
▪ Monetization and long-tail publisher tool suite allowed for immediate
market share growth; Voxnest has since leveraged Spreaker technology
to move upstream and launch Enterprise services in Jan 2019
▪ Cast Feed Validator acquired in Nov 2017 ▪ Acquired additional technology offering for podcast creators
Podcast-First Companies
Available capital from this buyer set is limited, but with growth, independent platforms will increasingly turn to M&A
*

View Slide

Technology platforms have been largely uninvolved with podcast M&A markets
Notes:
(1) Source: CBInsights, press releases, public filings
Technology Platforms
Following Spotify’s aggressive moves in 2019, technology platforms like Google and Apple may be acquisitive in 2020
Acquirer
Acquired
Companies
Transaction Notes Commentary
▪ 60db acquired in Oct 2017 ▪ Acquihire for digital audio tech talent
▪ Swell acquired in Feb 2019 for $30m
▪ Pop Up Archive acquired in Dec 2017
▪ Two relevant digital audio technology acquisitions to date
▪ Digital radio app Swell acquired and promptly shuttered; likely acquihire
for tech talent

View Slide

Category Transaction Notes Commentary
Digital
Media
Publishers
▪ HQ Education acquired HempSession in Mar 2019
▪ Hacker Noon acquired CryptoDisrupted in Jun 2019
▪ WagerTalk acquired in Aug 2018
▪ Small digital media publishers have acquired podcast brands, which contribute
audience and industry credibility to new parent companies
▪ Larger digital media publishers that have pursued podcasting have largely elected
to build given low start-up costs, but as industry matures may look to acquire talent
or market share
Non-Media
▪ Robinhood acquired MarketSnacks in Mar 2019 ▪ Consumer fintech company growing media offering for customer engagement,
including popular daily business podcast
▪ BDMI expects audio content will become more common in other products as a
mechanism of customer acquisition/retention
Corporate
Investment
▪ Sony Music invested in Neon Hum in Dec 2019 ▪ Transaction terms unknown, but indicates music labels are paying attention to
podcasts
▪ Strategic investment likely to become increasingly common way for corporates to
get involved, particularly as independent podcast companies reach larger scale
Other Notable Podcast / Audio Transactions
Notes:
(1) Source: CBInsights, press releases, public filings

View Slide

Section VI
Representative Companies Across the US Podcast Value Chain

View Slide

Representative Companies Across the US Podcast Value Chain
L
i
s
t
e
n
e
r
C
r
e
a
t
o
r
Verticalized content or
specialized UX
Publishers
Creator
Software Monetization Enablement Listening UX
Advertising Enablement Non-Ad
Enablement
Traditional
Media / Radio
Podcast-First
Digital
Publishers
Indie
audiochuck
Generalist consumer apps
**
Notes: includes select companies with estimated substantial portion of business based in US; excludes majority services
businesses e.g. agencies and production houses; * indicates BDMI portfolio company; ** indicates retired brand
(Exchanges, Networks, Creative,
Analytics, Promotion, etc.)
(Recording,
Editing,
DAWs, etc.)
*
*
*
*
*
*

View Slide

BDMI in Podcasting
BDMI Portfolio Companies…
… advertising on podcasts
… creating podcast content
“New iHeart-Fatherly Podcast ‘Finding
Fred’ Celebrates Kid TV Legend Fred
Rogers,” Inside Radio, October 2019
“Wondery and The Athletic Launch The
Lead,” September 2019
exited
exited
exited
BDMI Podcast / Audio Investments
Dynamic creative and personalization for digital audio; combines
known data points about an audience member to automatically create
and distribute unique, personalized ads. Clients include brands such
as Nissan, Sky, and Bauer, and audio companies such as Pandora.
End-to-end technology stack for podcast publishers, providing hosting,
dynamic ad insertion, audience analytics, and advertising inventory
(programmatic and direct sold). Delivers hundreds of millions of
downloads for customers such as NBCU, Marvel, Viacom, Google,
AMC, and The New York Times.
Podcast publisher ranked fourth among all publishers by monthly
audience and responsible for hit shows such as Dirty John, Dr. Death,
Gladiator, American Scandal, Business Wars, and 8 of the Top 20
Shows of 2019 (Podtrac).
Advertising analytics technology helping brands more acutely track
ROI of podcast advertising investment. Matches listeners to
purchasing behavior across platform and channel.

View Slide

January 2020
Thank You

View Slide

Podcast Market Deep Dive - BDMI - Jan 2020

Podcast Market Deep Dive - BDMI - Jan 2020

Brendan Brits

Other Decks in Business

Featured

Transcript