"Liked it a year ago... Facebook pulls out from podcasts?[Next.Jjin]"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Facebook is stepping back from podcasts. Podcasts have been a business that many big tech companies like YouTube (“Why is YouTube paying to embrace podcasts?” March 8 article), Spotify, and Amazon have shown great interest in. So what does it mean that Facebook is suddenly withdrawing its attention?

On the 14th (local time), Bloomberg cited sources reporting that Facebook’s enthusiasm for podcasts has disappeared after just one year. As recently as April last year, Facebook launched a podcast service for Americans called “Live Audio Rooms.” At that time, interest in audio services was very high. American Facebook users were able to listen to Live Audio Rooms and podcasts.

Facebook also signed contracts with various creators and participated as a sponsor in Podcast Movement, the largest conference in the U.S. podcast industry. Facebook’s product manager even appeared on a podcast called “New Media Show” to personally promote signing up on the Facebook platform, showing how strong Facebook’s passion for podcasts seemed.

However, surprisingly, this enthusiasm has cooled after just one year. Bloomberg conveyed the atmosphere by quoting industry insiders working with Facebook’s podcast platform. Facebook has been discussing other initiatives, including events related to the metaverse or online shopping, instead of podcasts. The industry has expressed great disappointment at Facebook’s waning interest, as there were high expectations that it would attract listeners and generate advertising revenue.

There is another example. Facebook had planned to grow podcasts by creating educational programs to nurture creators. However, according to Staff Colborn, CEO of podcast production company Edit Audio, discussions about various programs were held but never proceeded. Also, no Facebook employees attended last month’s offline Podcast Movement event, although Facebook had participated as a sponsor in August last year.

A Facebook spokesperson acknowledged that priorities are rising for short video services like Reels and Feed but said the company is still engaged in the podcast business. Although specifics were not disclosed, they mentioned looking for ways to connect audio services. Since the audio market itself has steady demand, should we assume that some lingering interest remains?

As Facebook’s parent company Meta Platforms accelerates its transition to the metaverse, attention should be paid to what other impacts this may have on Facebook’s other businesses.

Editor's Note [Next.Jjin] means “looking ahead to the real next in business” and is a section that delivers overseas news related to future businesses and startups such as metaverse, artificial intelligence (AI), and robotics of major companies. We will uncover and explain both major visible issues and small but important hidden issues in an easy-to-understand way.

This content was produced with the assistance of AI translation services.