Netflix aims to conquer the digital talk show market with video podcasts

Netflix’s strategy to dominate passive entertainment is taking shape: the streaming giant signed deals this week with iHeartMedia and Barstool Sports, in addition to a previous agreement with Spotify, to acquire exclusive video rights for certain programs. Reports also indicate they are in advanced talks with SiriusXM. This move is a calculated effort to position itself as the new talk show people consume while doing other activities—just like they used to with daytime TV.

Analysts see YouTube as Netflix’s real target. The numbers confirm this: YouTube reported this week that viewers watched over 700 million hours of podcast-format video content on TVs and living room devices in 2025, up from 400 million the previous year. This doubling signals a fundamental shift in how we consume entertainment.

YouTube dominates with 700 million hours: Netflix’s silent crisis

“As people spend less time on traditional TV and more on short-form or low-budget content on YouTube, this could pose a serious competitive threat to Netflix in the long run,” explains Matthew Dysart, entertainment lawyer and former head of podcast business affairs at Spotify, in an interview with TechCrunch.

This change is not superficial: it represents a complete migration of audiences toward new forms of background entertainment. Netflix cannot afford to lose this battle. That’s why its bet on podcasts as a modern talk show aims to reclaim the screen time YouTube already dominates.

Distrust among creators: is video really the future?

Not everyone in the podcast industry is convinced that Netflix’s move has long-term value. Some creators even warn that Netflix is fueling a speculative bubble.

When independent podcasters Mike Schubert and Sequoia Simone launched “Professional Talkers” this year, they noticed growing interest in video podcasts and decided to start the project as a video production on YouTube and Spotify. However, Schubert quickly found that his audience was indifferent to the visual format.

“Neither of us had done video before, so we thought, ‘Why not start from scratch and turn this into a video show?’” says Schubert. “But when we published an episode in audio only, the results were similar. So, why invest so much time and resources if we can do the same without video?”

Another established podcaster, Ronald Young Jr., considered expanding into video but reached a similar conclusion: “I asked myself, ‘Who am I doing this for?’ And I realized it’s for advertisers, media executives, not my audience.”

What is a podcast really? The fundamental disconnect

There’s a deep gap between how creators understand podcasts and how big platforms classify them. For producers, the format can include scripted fiction with sound design and voice actors, or reported stories refined like NPR’s—content that doesn’t naturally translate to video.

“The problem is how vague the word ‘podcast’ has become,” notes Eric Silver, a seasoned podcaster. “Now it just means a show.” This ambiguity allows Netflix and other platforms to redefine what a podcast is based on their commercial interests.

Mikah Sargent, producer of “This Week in Tech” at TWiT.tv, has a different perspective. Although his show has had a video component for over fifteen years, he constantly hears from listeners: “You guys were my background during tough times. Having you to listen to helped me pass the time.” This anecdotal but powerful data supports Netflix’s strategy: there is a real market for background entertainment that takes up more streaming time than traditional programs.

Spotify’s lesson: how a bubble bursts

Creators vividly remember what happened when Spotify aggressively entered the podcast market years ago. The platform spent billions acquiring tech startups and studios, controlling the entire production process—from recording software to ad sales tools. It created a speculative bubble that eventually burst, leading to studio closures, mass layoffs, and the widespread perception that podcasting was “dead.”

Netflix is taking a different approach. According to Ronald Young Jr.: “What Netflix is doing is more calculated than what Spotify did. Spotify threw money at top creators without direction and ended up sinking the market. When you value Joe Rogan at $250 million, you set such a high standard that the average podcaster wonders where they fit in.”

“Netflix and Spotify are similar in their logic: aggressive moves to test new value propositions targeting top creators,” explains Dysart. “They spend money that, from a global platform perspective, isn’t substantial—Netflix makes about $45 billion annually—but it’s significant for creators’ economies. It’s a way to quickly learn if there’s an opportunity.”

Netflix will open the game: nine-figure bets ahead

So far, Netflix has only negotiated with media companies, not individual creators like Spotify did. But Dysart anticipates this is just the beginning: “I would expect Netflix to eventually close a nine-figure deal with a top-tier podcast creator. I also expect Netflix to heavily invest in original podcasts with high-profile personalities.”

The new passive talk show: the future of background entertainment

If Netflix executes its strategy, our relationship with background entertainment will undergo a generational shift. Just as previous generations had daytime soap operas or shows like “The Office” playing in the background while doing chores, the next generation might have video podcasts as their passive talk show.

“Video podcast streaming occupies a time comparable to or greater than traditional programs,” summarizes Sargent. “If Netflix can position itself as the place people go for that, it’s a clear win for the company.” The question now is whether creators—and viewers—will be willing to make that leap.