Danish podcasting startup Podimo has attracted investor interest as it seeks to become the “Netflix for podcasts.” The company raised about $6.7 million in an investing round led by Germany’s e.ventures and Denmark’s Heartcore, ahead of the product’s launch later this year. Podimo plans to begin service in Germany and Denmark.
Podimo operates a “freemium” model, offering both free and paid tiers. Paying subscribers receive unlimited listening access and more features within the Podimo platform.
“We believe that with the fast-increasing amount of podcasts available, curation and discovery becomes more and more important to both unfold content in a relevant context and to the right individual user, which will benefit both podcast creators and consumers,” Morten Strunge, Podimo’s founder, told TechCrunch.
- Challenges lie ahead, as the podcast industry struggles to persuade consumers to pay for a product that has mostly been free.
- Podimo faces a number of competitors, including Luminary and Howl in the United States and France’s Majelan, as well as tech giants like Spotify, which has been aggressively building out podcasting as a core piece of its business.
- Podcasts have been slower to expand in Europe. In the U.S., 35% of people listened to a podcast in the past month, but only 25% in France and 21% in Germany and the U.K.
- While still budding in the podcast space, paid entertainment subscription services like Netflix are beginning to grapple with “subscription fatigue” as consumers get overwhelmed with the oversaturated market’s many options
- Karma Take: As podcasts venture into paid products, they will likely encounter an uphill battle as consumers become more selective with their paid subscriptions and the market becomes more crowded.