Netflix of Podcasting Receives $40 Million Round
Podcasting continues to make noise as the industry as audio continues to boom! A few years ago, people would have laughed at you if you said a podcast company could raise $40 Million, but here we are. Investors are starting to follow the trend and this time the beneficiary is Luminary Media. The company recently announced that they raised $40 Million to build out their subscription audio service, set to debut in 2019. The venture capital backed company is billing themselves as the “Netflix of podcasting.”
Luminary has already began reaching out to top creators like PRX, Wondery, HowStuffWorks and Cadence 13 to gauge interest from some of the industries top content creators.
So how will it work?
Luminary Media intends to pay content creators up front in exchange for the right to distribute their shows.
“Luminary intends to be a better Podcommunity for all,” Matt Sacks, the principal at New Enterprise Associates leading the venture, told The Wall Street Journal. “We want to be a better answer for creators and a better experience for listeners. We are podcast fans who love podcasts like the creators and listeners do, and our mission is to cultivate, amplify and elevate this special community.”
Luminary will not be the first subscription service to hit the market, following PodcastOne, Acast and Stitcher as the established brands in the industry.
It will be very interesting to see what kind of talent they can recruit and how they will present the subscription based content to the public in 2019.