A Netflix logo is pictured in Los Angeles, California, U.S., September 15, 2022. REUTERS/Mario Anzuoni
(Reuters) -Shares of iHeartMedia hit their highest in more than two years on Tuesday after Bloomberg News reported that Netflix was in talks to license video podcasts distributed by the radio and podcasting firm.
The 22% leap in the company's stock put the company on track for its best day in more than two months if current levels hold through the session.
The sharp rally underscores investor optimism that a tie-up with streaming giant Netflix could mark a turning point for iHeart's fortunes, by potentially opening up new avenues for growth.
Partnering with a global streaming leader could push its podcast brands into the mainstream and strengthen their cultural footprint, while expanding opportunities for talent and advertisers in a fiercely competitive media landscape.
Audio platforms are increasingly starting to tap into video-driven engagement trends, and the deal could position iHeart as a key player in streaming's next big battleground.
Research from text-to-video platform Zebracat in March showed that the average viewer retention for video podcasts was 2.7 times higher than for audio-only formats on mobile.
Netflix will seek exclusivity for select iHeart shows, the report said, a move that would pull full episodes off Alphabet's YouTube and ramp up competition between the companies.
It follows a similar deal between Netflix and Spotify last month. Under the deal, Netflix will add a slate of Spotify's most popular video podcasts to its service from early 2026.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)
