The focus is now on metaverse, e-commerce, and short videos
In April last year, Facebook announced it was introducing a couple of new audio formats, including podcasts, a short audio content creation tool called Soundbites, and Live Audio Rooms for hosting Clubhouse-like talks. The features started rolling out in June in the US. But less than a year down the line, the company’s interest in the space is waning, according to reports.
According to Bloomberg, Facebook is pulling back from its foray into podcasting to pursue other initiatives. The company is said to be prioritizing online shopping, metaverse events, and short-video projects with its podcast partners. The shift from audio to video is likely due to a drop in its stock price and increasing competition from the popular short video app, TikTok.
As of last year, when the company launched its audio-focused features, the market was red-hot. Live audio platform Clubhouse had a $4 billion valuation, and Spotify was valued at more than $50 billion — even Amazon was signing major audio deals. So, it’s no surprise that Facebook wanted a share of the market. It signed deals with creators and sponsored the August Podcast Movement, one of the industry’s biggest US conferences. The company also had some product managers appear on New Media Show, a long-time industry program, to encourage podcasters to join the platform. It even explored the possibility of a training program where podcasters from diverse backgrounds would be shown how to create their own shows, even though that plan didn’t come to fruition.
However, by the time the next Podcast Movement event came around in March 2022, Facebook neither sponsored it nor sent a single attendee. Meanwhile, initial Live Audio Rooms partners have not had their deals renewed and no longer host conversations. The report notes that a Facebook spokesperson said the company is still working on podcasts, even though there’s been a deliberate shift in priorities. According to them, the company still sees good engagement with its audio products.
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