Netflix Transforms Podcasts Into Its New Talk Show Proposal for the Streaming Era

Netflix is making a major strategic shift. This week, they signed agreements with iHeartMedia and Barstool Sports, and are also negotiating with SiriusXM to obtain exclusive video rights for podcast content. Everything indicates that the streaming platform aims to turn podcasts into its modern version of the daytime talk show that once dominated traditional television. Interestingly, YouTube already has the lead: viewers consumed over 700 million hours of podcast content on living room devices (like TVs) in 2025, compared to 400 million the previous year.

The Big Strategic Move: Netflix vs. YouTube

Netflix’s goal is clear to analysts. “As people start spending less time watching traditional TV and more on YouTube, that could pose a long-term competitive threat to Netflix,” says Matthew Dysart, entertainment lawyer and former head of podcast business affairs at Spotify.

The strategy seems calculated. Netflix isn’t buying startups or consolidating studios like Spotify did; instead, it’s negotiating directly with major media companies for exclusive content access. Some industry insiders see this as a well-thought-out offensive. “Basically, they’re saying: ‘We want to be the king of content, and the only way is to attack YouTube,’” explains Ronald Young Jr., a well-known podcaster.

Creators Divided Over the Transformation of the Talk Show

However, not all podcast creators view this trend of turning audio into visual talk shows with enthusiasm. Mike Schubert and Sequoia Simone launched their program “Professional Talkers” with video ambitions but discovered something surprising: their audience preferred the audio content.

“We published an episode only in audio, and it performed similarly,” Schubert recounts. “Why put so much effort into video when we can do it faster in audio?”

Young Jr. reached the same conclusion. “I asked myself: ‘Who am I making this change for?’ Then I realized it was for advertisers, for executives, not for the audience I built,” he reflects.

But there’s another reality: some consumers enjoy podcasts as passive background noise, similar to how daytime talk shows worked decades ago. Mikah Sargent, producer of “This Week in Tech” at TWiT.tv, regularly receives comments from listeners: “You guys were my company when I needed emotional support or was traveling; having that background sound helped pass the time.” Netflix recognizes this behavior and sees it as an opportunity for monetization similar to scheduled TV.

What Is a Podcast Really in the Era of the Modern Talk Show?

There’s a fundamental gap between how creators and tech companies think. For Netflix and Spotify, a podcast is content that can be transformed into video. For creators, a podcast can be scripted fiction with complex sound design, NPR-style reported stories, or simply a conversational format.

“The problem is that the word ‘podcast’ has become so vague that it now means anything,” says Eric Silver, an experimental podcaster. “It just means a show.”

This conceptual confusion explains why converting a podcast into a visual talk show format isn’t automatic. Not all content works visually, and forcing the transformation can dilute what makes the medium special.

The Spotify Lesson: Will Netflix Repeat the Same Mistake?

This is where the story weighs heavily. When Spotify spent billions on podcasts (including the infamous $250 million deal with Joe Rogan), it promised to be the future of the medium. Then came the collapse: mass layoffs, studio closures, and the industry feeling that “podcasting was dead.”

Eric Silver warns about what happens when big corporations enter: “When there’s consolidation, those with power get richer, but the future becomes more uncertain for others.”

Netflix is taking a different approach. “What Netflix is doing is more calculated,” notes Young Jr. “Spotify threw money blindly; Netflix is being more strategic.” Instead of signing multi-million dollar deals with individual creators, Netflix is negotiating with established companies.

Still, Matthew Dysart predicts future moves: “I would expect Netflix to try to close a nine-figure deal with a top-tier podcaster. They will also heavily invest in high-profile personalities for original podcasts.”

The Future of Entertainment: When the Talk Show Is Streamed

If Netflix achieves its goals, our consumption habits will change radically. Mikah Sargent sums it up: “Back in the day, my mom had a soap opera in the background while doing things. I had ‘The Office’ in the background. Now, people can have a podcast in the background, and if Netflix becomes the place where that happens, then it’s a win for the company.”

The transformation of the daytime talk show won’t be through traditional TV but via streaming platforms offering on-demand content. The question isn’t whether Netflix will succeed in its strategy against YouTube, but whether the podcast industry can grow healthily under this new corporate pressure, or if we’ll see a repeat of the bubble and collapse scenario that Spotify once triggered.