Amazon makes surprising decision to cut losses on recent deal

Are you a “Joe Rogan Experience” guy or more of a “Pod Save America” gal? How about “The Mel Robbins Podcast,” Jay Shetty’s “On Purpose,” “My Favorite Murder,” or “Crime Junkie”? 

No matter what, the odds are pretty good that you subscribe to at least a handful of podcasts. 

??Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter??

The growth of podcasting is kind of nuts. As of 2025, there are over 4.52 million podcasts worldwide, with nearly 487,200 new shows launched in just the past three months, according to Podcastatistics. 

Most people in the U.S. listen to podcasts via: 

• YouTube: 33%

• Spotify: 26%

• Apple: 14%

Notice a name missing from that list? 

Yep, podcasts are one of the few technology-related lists Amazon doesn’t dominate. 

Now, in a surprising move that underscores the evolving nature of the podcast industry, Amazon is dismantling Wondery as a standalone podcast studio, cutting approximately 110 jobs and signaling a major strategic shift. 

Amazon will dismantle its Wondery podcasting studio. 

Image source: Shutterstock

Amazon’s new “creator services”

The Wondery brand isn’t going away completely. Still, the division that produced acclaimed narrative series such as “Dr. Death,” “American Scandal,” and “Business Wars” will be absorbed into Amazon’s Audible platform.

Meanwhile, Wondery’s high-profile, creator-led shows — like “New Heights” with the Kelce brothers, “Mind the Game” with LeBron James, and “Armchair Expert” with Dax Shepard — will now be housed under a new “creator services” division focused on monetization and partnerships.

Wondery’s origins and why Amazon bought it

Former Fox International Channels CEO Hernan Lopez founded Wondery in 2016. Lopez saw an opportunity to build what he called the “HBO of podcasting” — a studio focused on high-quality, immersive, narrative storytelling. 

The company quickly made a name for itself with hits like “Dirty John,” “Dr. Death,” and “The Shrink Next Door,” many of which were later adapted for television.

Related: Amazon plans popular service change customers are bound to hate

Barely five years later, Amazon acquired Wondery for a reported $300 million. The plan was to bolster Amazon’s position in the fast-growing podcast market and compete with Spotify, Apple, and others. 

Wondery’s library of chart-topping shows was seen as a way to:

  • Add exclusive content to Amazon Music and Audible
  • Expand its ad-supported audio and subscription offerings
  • Generate intellectual property that could be developed into TV or film projects, ideally for Amazon Studios

Amazon’s goal was to be a content-producing powerhouse — not just a distributor.

Why Amazon is making this move

Fast forward to 2025, and the podcast landscape has shifted dramatically.

Amazon VP of Audio Steve Boom said in an internal memo per Reuters that creator-led, video-first podcasts “have different audience needs and require distinct discovery, growth and monetization strategies compared to audio-first, narrative series.”

This shift reflects changing listener and advertiser preferences. While narrative podcasts once dominated the charts, today’s top-performing shows tend to be personality-driven, video-enhanced, and easily shareable across platforms like YouTube and TikTok.

What happens to Wondery now?

Despite some headlines calling this a shutdown, Amazon says the Wondery name will continue to exist, particularly for its creator-led content. 

However, the heart of Wondery, which focused on scripted storytelling, will now live within Audible. CEO Jen Sargent is departing as part of the reorganization.

Related: T-Mobile boots customers off yearslong offers without asking

The Wondery+ subscription service will remain available, but it’s clear that Amazon’s podcast strategy is narrowing in on shows that can scale quickly, attract big-name talent, and command premium ad rates.

Podcasting is still growing fast, but it’s evolving 

The overall podcast industry is still on the rise, despite Amazon’s retreat from narrative. According to Edison Research, over 135 million Americans now listen to podcasts each month — up from 82 million just five years ago. 

U.S. podcast ad revenue is projected to surpass $4 billion by 2026, per the Interactive Advertising Bureau.

But the growth isn’t spread evenly. The fastest-growing category is video podcasts, where content from influencers, athletes, and celebrities generates massive engagement. That’s where Amazon is now focusing its efforts.

The bigger picture: podcasting, consolidation, and profit pressure

Amazon’s move is part of a broader trend across the media industry, where platforms prioritize profitability and scale over artistic ambition. With interest rates high and investor patience wearing thin, companies can no longer afford to fund years of losses just to build market share.

Buying Wondery was supposed to help Amazon become a dominant player in podcasts, but it didn’t work out that way. The acquisition didn’t bring dominance — just more complexity. 

Now, Amazon is streamlining its audio business in hopes of making it more efficient and profitable.

What it means for podcast listeners

If you love high-production storytelling podcasts, this could be bad news. 

Wondery was one of the few studios consistently investing in scripted, documentary-style audio. With Amazon shifting away from that model, it’s unclear who will pick up the slack.

On the other hand, fans of celebrity podcasts may see more content, more video integration, and better-quality production as Amazon doubles down on creator services.

Related: The alarming reason so many tech companies are raising cash

#Amazon #surprising #decision #cut #losses #deal