This week, Apple announced its entry into the premium podcast space that allows creators to monetize their shows directly within Apple podcasts, with subscriptions. Apple’s service launches in May and will allow podcasts to offer ad-free episodes and additional content to listeners for a monthly membership.
Somewhat controversially, Apple will take a 15-30% commission from podcast subscription revenue. The Wall Street Journal says that Spotify will announce similar subscription features next week, but will not see a cut in revenue.
Apple’s argument is that it will allow podcasters to easily add paid subscription content to their shows and sell it through the Podcasts app on iPhone, iPad, and Mac. Users will be able to press a button within the app to subscribe, as simple as download an application. Apple believes that the 15-30% commission rates (plus a membership fee of $ 20 a year to be part of the Apple Podcasters Program in the first place) reflect that convenience.
However, Spotify definitely has the upper hand in terms of distribution, as it simply supports many more platforms, including Android phones, and has roughly twice as many active paying subscribers on its service. If The Wall Street Journal is correct, it will also appeal to publishers who objected to Apple’s commission rates when they announced the podcast subscription initiative earlier this week.
For a while, Spotify has offered its own original podcasts that are exclusive to the Spotify app. Apple has dabbled in this area with some companion podcasts for TV + content. However, it also seems to want to make original audio programs. The Wall Street Journal report says that Apple is in active discussions with podcasters to produce shows that would be exclusive to Apple Podcasts. Access to these original Apple programs may require a subscription to Apple Music or Apple One.
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