Spotify is launching podcast subscriptions… however it’s not going to make any cash from them
Last week, Apple announced Apple Podcasts subscriptions, which will be available to Apple users in 170 countries starting May.
These subscriptions can be launched by any individual podcast publisher on the service, with Apple getting a 30% profit cut for the first year of these agreements and 15% thereafter.
Participation in the Apple Podcasters program costs podcasters $ 19.99 per year.
Spotify is reportedly following suit and plans to launch its own podcast subscription soon.
Unlike Apple, however, SPOT doesn’t charge podcasters to activate subscriptions – and it doesn’t take any commissions either.
This emerges from the Wall Street Journal, which, citing a person familiar with the matter, also reports that podcasters using Spotify’s not yet launched subscription service can “set their own prices”.
While the WSJ’s report on Spotify’s podcast subscriptions comes out so soon after rival Apple announced that podcasting competition is getting tougher, the Wall Street Journal cites Spotify’s chief content and advertising executive, Dawn Ostroff, as saying “Room for everyone”. in the podcasting area.
“The possibilities for audio are huge. We believe that given the scope and size of this medium, there is room for everyone, ”said Ostroff.
“Other companies see audio as a side business – it’s our core business.”
The prospect of individual podcast shows where subscription levels are set up for Spotify and then 100% of the proceeds are charged with no money left with Spotify is sure to tingle the taste buds of the artist / musician community.
Could Spotify one day allow artists to charge fans subscription fees directly for access to certain recordings?
If so, what would the big record companies think of such a mechanism?
Or, in fact, Spotify investors who are already watching the company hand over the full booty from podcast subscriptions while Apple sniffs almost a third of them.
The launch of Apple’s new subscription offering follows rival Spotify’s podcast buying frenzy in recent years.
SPOT has invested hundreds of millions of dollars in its podcast strategy, which included the acquisition of various companies and offerings for exclusive podcast content such as the Joe Rogan Experience.
The company even sent out a user survey in November showing it is considering launching a standalone podcast subscription service, which Apple has apparently beaten it up against.
As the WSJ notes, Spotify is trying to generate income from podcasts through advertising in addition to subscriptions. That strategy was underscored by the $ 235 million acquisition of Megaphone Brand Partners in November.
Spotify also worked on a new interactive podcast ad feature called “In-App Deals” last June, which the platform promised that podcast hosts would no longer need to read out offer codes or web addresses in order for listeners to redeem offers.Music business worldwide