Amazon Shuts Down Wondery Podcast Studio, Merges Remnants with Audible

Amazon is shutting down its Wondery podcast studio and integrating its remaining assets into Audible, a move aimed at competing with successful platforms like Spotify and Apple Podcasts. The decision comes as Amazon's podcast business has struggled to gain traction. Wondery was acquired by Amazon in 2020, but its performance has been disappointing, prompting the company to discontinue the studio and focus on its Audible unit.

Amazon has announced the closure of its Wondery podcast studio and the integration of its remaining assets into Audible, a move aimed at competing with successful platforms like Spotify and Apple Podcasts. The decision comes as Amazon's podcast business has struggled to gain traction. Wondery was acquired by Amazon in 2020, but its performance has been disappointing, prompting the company to discontinue the studio and focus on its Audible unit.

This strategic shift reflects Amazon's broader efforts to consolidate and strengthen its digital media offerings. The move also underscores the company's ongoing quest to capture a larger share of the podcast market, which has been experiencing rapid growth. According to a report by the Interactive Advertising Bureau, the podcast advertising market is expected to reach $2.4 billion by 2025 [1].

The closure of Wondery and the integration of its assets into Audible are part of a broader trend in the industry, where companies are consolidating their digital media offerings to better compete with established players. For example, Spotify recently acquired Megaphone, a podcast production company, to expand its podcast content and production capabilities.

In the context of Amazon's broader financial performance, this move is seen as a cost-cutting measure aimed at improving operational efficiency. Amazon's focus on cost-cutting has been evident in recent quarters, with the company trimming jobs in various units, including AWS, books, devices, and podcasting. The company's efforts to reduce costs have been showing results, with headcount falling by 14,000 workers from this year's first quarter, bringing the total to 1.46 million [1].

In the current financial quarter, Amazon expects total net sales to be between $174.0 billion and $179.5 billion, compared with analysts' average estimate of $173.08 billion. The range for operating income in the current quarter was also light, with Amazon forecasting between $15.5 billion and $20.5 billion, compared with expectations of $19.45 billion [1].

While the closure of Wondery and the integration of its assets into Audible may not have a significant impact on Amazon's overall financial performance, it reflects the company's strategic focus on digital media and its ongoing efforts to compete in the podcast market. As the podcast industry continues to grow, Amazon's move to consolidate its digital media offerings could position it to better compete with established players like Spotify and Apple Podcasts.

References:
[1] https://nypost.com/2025/07/31/business/amazon-posts-weak-cloud-growth-while-rivals-google-microsoft-thrive/