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Amazon shuts down Wondery podcast studio, cuts 110 jobs
Amazon is closing its Wondery podcast studio and laying off 110 employees as part of a reorganization aimed at competing better in the evolving podcast industry, shifting focus to existing shows under Audible and a new creator services team.
Key points
- Amazon acquired Wondery in late 2020 and is now shutting it down as part of a broader reorganization of its audio business.
- 110 jobs are being cut due to this decision.
- Existing Wondery series will now be managed under Audible or a new creator services team.
- The podcast landscape has changed significantly, particularly with the rise of video content.
- Steve Boom, Amazon's VP of audio, indicated that the company's initial push into podcasts has not met expectations.
Why it matters
- This shift reflects a larger trend in the podcasting industry where video content is becoming increasingly important.
- Amazon's challenge illustrates the competitive dynamics among streaming services like Spotify and YouTube, which have successfully integrated video into their offerings.
- The closure of Wondery highlights the difficulties major companies face in diversifying content formats and responding to audience preferences.
Amazon's reorganization highlights the challenges in the podcast industry as video gains prominence, signaling a strategic pivot to ensure competitiveness against popular platforms.