Hernan Lopez, founder of Wondery, talks about his journey into podcasting, the success of 'Dirty John,' starting a podcast company, and the decision to sell Wondery to Amazon for $300 million.
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Quick takeaways
Being an early player in the podcast industry gave Wondery a competitive advantage by recognizing the potential of emotionally immersive storytelling.
Wondery strategically positioned itself in Hollywood, offering creators the opportunity for their podcast to be adapted into a television show, securing additional revenue streams and attracting talent.
The founder of Wondery persevered through skepticism and financial struggles, demonstrating adaptability, hard work, and the combination of luck and skill in building a successful podcast network.
Deep dives
The Rise of Wondery: From Podcast Startup to Acquisition
In this podcast episode, host Guy Raz interviews Aaron on Lopez, the founder of Wondery, a successful podcast company that was eventually acquired by a major tech company. Lopez shares his journey starting Wondery after being inspired by the success of shows like Serial and seeing the potential for growth in the podcast industry. He discusses the importance of emotionally immersive storytelling and reveals how Wondery's hit shows like Dirty John and Dr. Death contributed to their success. Despite tempting acquisition offers, Lopez and his team choose to continue building Wondery, driven by their passion and belief in the company's potential. The podcast episode explores the challenges faced by Wondery and the strategic decisions made to compete in the growing podcast market.
The Influence of Timing in Wondery's Success
Timing plays a crucial role in Wondery's success, according to founder Aaron on Lopez. He highlights how being an early player in the podcast industry gave Wondery an advantage, similar to the impact Tivo had on television. Lopez recognized the potential for emotionally immersive storytelling in podcasts and saw the growing popularity of the medium through shows like Serial. With a focus on building a library of evergreen content and leveraging the increasing smartphone adoption, Wondery positioned itself at the forefront of the audio revolution. Lopez's decision to turn down acquisition offers and continue growing Wondery demonstrated his confidence in the company's momentum and the potential for future success.
Managing Competition and Revenue Streams in the Podcast Industry
In a rapidly evolving podcast industry, Wondery had to navigate increasing competition and monetization challenges. Despite the rise of new podcast companies and the potential race to the bottom for advertising revenue, founder Aaron on Lopez understood the need to develop additional revenue streams to secure Wondery's sustainability. By positioning themselves in Hollywood, Wondery offered creators the possibility of their podcast being adapted into a television show, providing additional value and attracting talented storytellers. Lopez also recognized the importance of creating satisfying and compelling narratives to engage audiences and encourage word-of-mouth recommendations. With a long-term vision, Wondery sought to build a brand that could attract potential acquisition or even consider going public as viable exit strategies.
Building a Podcast Network and Overcoming Investor Challenges
In 2016, the founder of Wondery faced the challenge of starting a podcast network in a small and uncertain industry. Despite skepticism and difficulties in raising venture capital, the founder believed in the potential of podcasting and launched the network with the help of initial funding from Fox and friends. The network aimed to bring TV-style storytelling, marketing strategies, and sound design to podcasts. The initial product, an audio drama called Secrets, Crimes, and Audio Tape, faced competition but led the founder to discover the demand for true crime stories with high stakes and sound design. The network faced financial struggles in the early years, but the founder remained determined to build a successful business.
Acquiring Funding, Launching Hit Shows, and Navigating Legal Challenges
The founder navigated the challenges of attracting investors and advertisers while building a team and launching shows. The network's first hit show, Hollywood & Crime, demonstrated the power of true crime stories combined with Hollywood-style storytelling, character development, and strategic marketing. However, financial sustainability remained a challenge. Amidst the network's growth and success, the founder faced personal legal challenges. Indicted by the federal government on bribery allegations related to a previous role at Fox, the founder maintained innocence, pled not guilty, and continued to lead the network. Eventually, the conviction was overturned, providing relief and allowing the founder to focus on growing the business. Following the acquisition of Wondery by Amazon, the founder reflects on the journey, emphasizing the role of adaptability, hard work, and the combination of luck and skill in achieving success.
When Hernan Lopez founded Wondery in 2016, podcasts were just starting to go mainstream. Five years later, his team had scored a number of hit shows and sold to Amazon for a reported $300 million. Not bad for an immigrant from Argentina who moved to the U.S. in his late 20s with “terrible” English skills.
Before launching Wondery, Hernan worked his way up in television, eventually becoming CEO of Fox International Channels. But despite his experience and connections, he struggled to attract investors and break through in an emerging industry. After the success of shows like Dirty John, Wondery began to take off, and today it’s one of the largest podcast networks in the world, with hundreds of shows in comedy, crime, sports, history and business—including this one!
This episode was produced by Chris Maccini with music by Ramtin Arablouei.
Edited by Neva Grant, with research from Alex Cheng.
