Shares of iHeartMedia (IHRT) soared 17% on Tuesday, hitting their highest level in more than two years after reports surfaced that Netflix (NFLX) is in advanced talks to license select video podcasts from the radio and podcasting giant. The stock’s rally, one of its strongest in recent months, underscores growing optimism that a partnership with the world’s leading streaming service could revitalize iHeart’s business model at a critical moment for the media industry.

Investors appear to be betting that a Netflix tie-up would do more than boost visibility—it could transform iHeart into a serious contender in the fast-emerging market where audio, video, and streaming content converge.

A Media Pivot Amid a Shifting Landscape

The reported discussions between iHeartMedia and Netflix mark a significant development for both companies. For iHeart, whose legacy roots in terrestrial radio have long been overshadowed by digital-first competitors, this could represent a strategic evolution into a broader multimedia ecosystem.

For Netflix, the potential deal continues its aggressive expansion beyond scripted entertainment into talk-driven formats. After the streaming platform struck a similar licensing arrangement with Spotify last month—set to bring top video podcasts such as The Bill Simmons Podcast and The Rewatchables to its service in 2026—the company appears determined to position itself as a hub for long-form content consumption across genres.

According to Bloomberg, Netflix is seeking exclusivity for certain iHeart shows, which could lead to the removal of those episodes from YouTube, Alphabet’s dominant video platform. If finalized, the partnership would not only intensify competition among major streaming services but also potentially redefine the economics of podcast distribution by introducing new forms of monetization and audience analytics.

Why the Market Reacted So Strongly

The 17% surge in iHeart shares reflects investor enthusiasm for the company’s efforts to pivot toward digital-first, video-integrated formats. Over the past two years, iHeart has struggled with declining ad revenue and a sluggish recovery in traditional broadcasting. Aligning with a global platform like Netflix could amplify its global footprint, attract new advertisers, and enable cross-promotion with Netflix’s existing catalog of video and documentary content.

Analysts note that the integration of video into audio platforms is more than a passing trend. A March 2025 study by Zebracat, a text-to-video analytics platform, found that viewer retention for video podcasts was 2.7 times higher than for audio-only versions on mobile. The statistic highlights why major streaming players are racing to integrate podcasts with visual media: engagement equals monetization.

In addition, Netflix’s global reach—spanning over 270 million subscribers—could help iHeart amplify its most popular shows, from Stuff You Should Know to The Breakfast Club, to new audiences across North America, Europe, and Asia. For creators and advertisers, such exposure could translate to higher ad premiums and cross-platform sponsorship opportunities.

Streaming’s Next Battleground: The Video Podcast Era

The rise of video podcasts marks the next frontier in the streaming wars, blending the intimacy of audio with the visual engagement of short-form video. Companies like Spotify, YouTube, and now Netflix are vying to become the go-to destination for conversational media, blurring the lines between television, talk radio, and influencer-driven content.

For iHeartMedia, the stakes are high. Once burdened by billions in debt after its 2018 bankruptcy restructuring, the company has made significant strides in deleveraging and refocusing on digital operations. A Netflix partnership could signal the company’s re-emergence as a dynamic player in the global entertainment economy.

What to Watch Next

While neither Netflix nor iHeart has officially confirmed the talks, investors and industry watchers are already assessing how such a deal could reshape the streaming content ecosystem. If finalized, it would follow a broader trend of convergence between traditional media assets and tech-driven platforms, creating new synergies—and competitive pressures—across the industry.

As iHeart seeks new growth avenues, success will depend on its ability to leverage these partnerships without diluting its brand or alienating existing advertisers. The market, however, appears convinced that the company’s comeback story is only getting started.