Marketplace Morning Report

Episode Title: Spotify and Netflix join forces
Date: October 22, 2025
Host: David Brancaccio
Special Guest: Michael D. Smith (Carnegie Mellon University)
Reporter: Nancy Marshall Genzer

Episode Overview

This episode dives into the newly announced partnership between Spotify and Netflix, exploring what the collaboration means for the streaming, audio, and video content landscapes. Host David Brancaccio also unpacks overnight business news, trends in crypto regulation, and new moves in the AI-powered web browser space.

Key Discussion Points & Insights

1. Netflix and Spotify Partnership: Expanding Content, Sharing Audiences

• Netflix’s Financial Moment
  • Netflix’s value dipped 6% overnight after disappointing quarterly results, attributed to a Brazil tax dispute. [00:31]
• The Collaboration Explained
  • Netflix will begin streaming selected Spotify podcasts with video — including sports talk, true crime, and pop culture shows.
  • This move leverages Netflix’s strong video platform and Spotify’s content library, especially as many podcasts already produce video. [01:18–01:46]
• Strategic Benefits
  • For Netflix: Gains new types of content and deeper user data; can personalize recommendations based on podcast preferences.

    “Netflix is going to know something about them and is going to be able to promote content to them... much, much more easily than they otherwise could.”
    — Michael D. Smith [02:09]

  • For Spotify: Reaches new audiences on a leading video platform and can steer Netflix away from becoming a direct podcast competitor.

    “Spotify gets... access to a new audience on a platform where people are there to watch video… [and] the potential to keep Netflix out of the podcast game.”
    — Michael D. Smith [02:42]

• Competitive Landscape: YouTube as the Common Rival
  • Both companies are collaborating to compete against YouTube's huge dominance in video podcasting and content discovery.

    “The enemy of my enemy is my friend? Let's create something where we both can do a better job of competing against YouTube.”
    — Michael D. Smith [03:17]

  • Netflix is seen as attracting a more affluent audience compared to YouTube.

    “By doing this, they’re going after the top end of the market and we'll let YouTube keep the bottom end of the market.”
    — Michael D. Smith [03:45]

• The Shift to Video Podcasts
  • Listeners increasingly want video with their podcasts — “audio with pictures.”

    "We started with these podcasts as audio, and people discover actually it’s a whole lot more fun to watch Conan O'Brien and Sona with video."
    — Michael D. Smith [04:10]

2. U.S. Federal Reserve Softens Stance on Cryptocurrency

— Reporter: Nancy Marshall Genzer

• The Federal Reserve hosted a conference signaling openness to new payment technologies, including stablecoins and digital assets.

  “The distributed ledgers and crypto assets are no longer on the fringes but are increasingly woven into the fabric of the payment and financial system.”
  — Fed Governor Christopher Waller [05:02]

• The Fed is considering accounts for fintechs, giving them access to payment infrastructure, though without interest and possibly with caps.

  “Payment innovation moves fast, and the Federal Reserve needs to keep up.”
  — Fed Governor Christopher Waller [05:32]

• Benefit: Crypto firms would no longer have to rely on traditional banks as intermediaries. [05:35]

3. AI-Powered Browser: OpenAI’s Atlas

— Reporter: Lily Jamali

• OpenAI launched "Atlas," a web browser with ChatGPT built in, aiming to rival Google Chrome. [06:40]
• Features include “agent mode,” where ChatGPT can independently conduct searches for paying subscribers.
• Context: This comes on the heels of legal scrutiny on Google's search monopoly, but Chrome remains with Google for now.
• Google has been integrating AI-generated answers into search results as competition mounts. [07:33]

Notable Quotes & Memorable Moments

• On Consumer Data and Personalization:

  “Netflix is going to know something about them and is going to be able to promote content to them... much, much more easily than they otherwise could.”
  — Michael D. Smith (02:09)

• Strategic Collaboration to Compete with YouTube:

  “The enemy of my enemy is my friend? Let's create something where we both can do a better job of competing against YouTube.”
  — Michael D. Smith (03:17)

• Audience Segmentation:

  “By doing this, they’re going after the top end of the market and we'll let YouTube keep the bottom end of the market.”
  — Michael D. Smith (03:45)

• On Video Podcasts:

  “We started with these podcasts as audio, and people discover actually it’s a whole lot more fun to watch Conan O'Brien and Sona with video.”
  — Michael D. Smith (04:10)

• Regulators Warming to Crypto:

  "The distributed ledgers and crypto assets are no longer on the fringes but are increasingly woven into the fabric of the payment and financial system."
  — Fed Governor Christopher Waller (05:02)

• Fed on FinTech Accounts:

  “Payment innovation moves fast, and the Federal Reserve needs to keep up.”
  — Fed Governor Christopher Waller (05:32)

Timeline & Segment Timestamps

• 00:31 – 04:34: Core interview with Michael D. Smith on the Spotify-Netflix partnership, competitive dynamics, and audience segmentation.
• 04:36 – 06:08: Nancy Marshall Genzer’s report on the Fed’s evolving crypto stance, with quotes from Fed Governor Waller.
• 06:40 – 07:33: Lily Jamali’s update on OpenAI’s Atlas browser and Google’s position in the tech landscape.