Amazon cuts losses on recent deal

The Rise of Podcasts and Amazon’s Strategic Shift

Podcasts have become a staple in the daily lives of millions. Whether you're a fan of the "Joe Rogan Experience," "Pod Save America," "The Mel Robbins Podcast," Jay Shetty's "On Purpose," "My Favorite Murder," or "Crime Junkie," it's safe to say that most people have at least a few podcasts they follow regularly. The growth of this medium has been staggering, with over 4.52 million podcasts worldwide as of 2025. In just the past three months alone, nearly 487,200 new shows were launched.

In the United States, the majority of listeners access podcasts through platforms like YouTube (33%), Spotify (26%), and Apple (14%). Notably, Amazon is one of the few major tech companies not dominating this space.

Amazon’s New Direction: Dismantling Wondery

In a surprising move that highlights the evolving landscape of the podcast industry, Amazon is reorganizing its audio business by dismantling Wondery as a standalone studio. This decision involves cutting approximately 110 jobs and shifting focus toward a new "creator services" division. While the Wondery brand will continue to exist, the division responsible for producing acclaimed narrative series such as "Dr. Death," "American Scandal," and "Business Wars" will be integrated into Amazon's Audible platform.

Meanwhile, high-profile shows like "New Heights" with the Kelce brothers, "Mind the Game" with LeBron James, and "Armchair Expert" with Dax Shepard will now fall under the new "creator services" division, which emphasizes monetization and partnerships.

The Origins of Wondery and Its Acquisition by Amazon

Wondery was founded in 2016 by Hernan Lopez, former CEO of Fox International Channels. His vision was to create the "HBO of podcasting" — a studio focused on high-quality, immersive storytelling. The company quickly gained recognition with hits like "Dirty John," "Dr. Death," and "The Shrink Next Door," many of which were later adapted for television.

Amazon acquired Wondery for $300 million, aiming to strengthen its position in the growing podcast market and compete with platforms like Spotify and Apple. The acquisition was intended to add exclusive content to Amazon Music and Audible, expand ad-supported audio and subscription offerings, and generate intellectual property for potential TV or film projects.

Why Amazon Is Making This Move

Fast forward to 2025, and the podcast industry has changed significantly. According to Amazon VP of Audio Steve Boom, creator-led, video-first podcasts require different strategies compared to traditional audio-only narratives. This shift reflects changing listener and advertiser preferences, with personality-driven, video-enhanced content becoming more popular across platforms like YouTube and TikTok.

What Happens to Wondery Now?

Despite some reports suggesting a shutdown, Amazon has confirmed that the Wondery name will remain for its creator-led content. However, the core of Wondery, which focused on scripted storytelling, will now be part of Audible. CEO Jen Sargent is stepping down as part of the reorganization. The Wondery+ subscription service will still be available, but Amazon's strategy is now focusing on shows that can scale quickly, attract big names, and command premium ad rates.

Podcasting is Still Growing, But It’s Evolving

The overall podcast industry continues to grow, with over 135 million Americans listening each month — up from 82 million five years ago. U.S. podcast ad revenue is expected to surpass $4 billion by 2026. However, the growth isn't uniform. Video podcasts, featuring influencers, athletes, and celebrities, are the fastest-growing category. That’s where Amazon is now directing its efforts.

The Bigger Picture: Consolidation and Profit Pressure

Amazon's decision is part of a broader trend in the media industry, where platforms prioritize profitability and scalability over artistic ambition. With rising interest rates and limited investor patience, companies can no longer afford long-term losses just to gain market share. While buying Wondery was meant to make Amazon a dominant player in podcasts, it didn’t deliver the expected results. Now, the company is streamlining its audio business to improve efficiency and profitability.

What This Means for Listeners

For fans of high-production storytelling podcasts, this could be a setback. Wondery was one of the few studios consistently investing in scripted, documentary-style audio. With Amazon shifting away from this model, it's unclear who will take over. On the other hand, fans of celebrity-driven content may see more video integration, better production quality, and more content as Amazon focuses on creator services.