Amazon Echo Dot speaker
CNBC | Richard Washington
Amazon announced on Wednesday that the podcasting company is acquiring Wondery, expanding its catalog of original audio content.
As part of the deal, Wondery will join Amazon Music, the e-commerce giant’s music streaming business. Amazon Music added podcasts to its platform in September to capture some of the increasingly competitive podcasting market, in which Spotify, Apple and others have gained ground.
Terms of the deal were not disclosed. An Amazon spokesperson declined to comment. Wondery declined to comment.
Founded in 2016, Wondery has produced some of the most popular podcasts in recent years, including true crime series like “Dirty John,” “Dr. Death,” and “Over My Dead Body.” The podcast producer and network say it has more than 10 million unique listeners every month.
Speculation about the deal had started earlier this month, when The Wall Street Journal reported that Amazon was in talks to acquire the podcaster. Bloomberg reported in September that Wondery was investigating a sale.
The deal comes at a time when Spotify, Apple, and others continue to chase dominance in the podcasting market. Amazon, Apple, and Spotify have all tried to add podcasts to their streaming services as the medium has become the most popular way to listen to music and it allows them to differentiate their services from original podcasts.
Spotify has invested heavily in producing original podcasts, including a recent deal with Prince Harry and wife Meghan Markle. It has also acquired four companies to expand its library, including The Ringer, Gimlet Media, Anchor and Parcast. Meanwhile, Apple has been slowly expanding its original podcast efforts and the Podcast app is installed on iPhones by default.
Amazon has a foothold in audio content outside of Amazon Music. The company also owns Audible, which hosts audiobooks and podcasts. The service has expanded its original audio content over the years and expanded its offering of free podcasts, including popular shows “This American Life,” “Pod Save America,” and “You’re Wrong About.”