Amazon Acquires Podcast Company Wondery... Heralding Fierce Competition in the Music Streaming Market

by Kwon Jaehee

Published 31 Dec.2020 08:47(KST)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Amazon, the world's largest e-commerce company, announced that it will acquire the podcast startup 'Wondery.'

According to CNBC on the 30th (local time), with this acquisition, Wondery will join Amazon's music streaming service, 'Amazon Music.'

Amazon plans to strengthen its audio content through the acquisition of Wondery and compete with music service providers such as Spotify and Apple Music.

The acquisition price was not disclosed, but according to earlier reports by the Wall Street Journal (WSJ) and others, Wondery's market value is estimated to be around $300 million (approximately 326.5 billion KRW).

CNBC evaluated that this acquisition will allow Amazon to expand its list of original audio content.

Founded in 2016, Wondery has more than 10 million monthly listeners. In recent years, it has produced popular podcast series. Representative works include nonfiction true crime dramas such as 'Dirty John' and 'Dr. Death,' where writers investigate real crime cases and real-life figures and reconstruct them into dramas.

In the United States, the podcast market is fiercely competitive among Spotify, Apple, and Amazon. Since podcasts are the most popular way people listen to music and original content allows differentiation from other companies, these companies are expanding their podcast catalogs.

For example, Spotify, the number one player in the podcast market, has recently made large-scale investments in original podcast production, including contracts with the British Prince Harry and Duchess Meghan Markle.

Apple is also expanding its original podcasts while pre-installing the podcast app as a default app on iPhones.

Amazon also offers 'Audible,' a service that provides audiobooks and podcasts that read books aloud, in addition to Amazon Music.