After Apple announced Apple Podcasts Subscriptions last week, Spotify may also allow podcasters to offer Patreon-like paid exclusives to be purchased on their podcast platform.
Spotify has invested heavily in podcasts in the past couple of years. Aware that this revenue won’t be recouped from ads alone, it’s been clear Spotify have plans to monetize podcasts another way. We first heard whispers of a potential Spotify premium podcast platform after a survey from the streaming company went out in November last year. This sparked questions about how exactly this would work. Last week, Apple announced plans for Apple Podcast Subscriptions due to launch in May. This essentially allows creators to offer Patreon-like paid exclusive content right in the Apple Podcasts app. We know Apple will allow any podcasters to offer exclusive content, providing their pay a $19.99 per year fee to Apple. Apple will also take a 30% cut of creators subscriptions for the first year, with this reducing to 15% for following years.
Spotify are thought to be launching their own version of premium podcasts on their podcast platform later this week. Similarly to Apple, the platform is thought to offer creators the opportunity to sell in-app subscriptions, at any price they choose, to give listeners a range of exclusive content. Unlike Apple however, according to The Wall Street Journal, Spotify won’t be taking a cut from podcasters. Reportedly on iOS, listeners wanting to support the podcast will be routed through a website to purchase subscriptions, therefore bypassing Apple’s 30% App Store fee. Presumably, this will be the same on the Google Play Store.
We’re hoping for more official details from Spotify this week, as questions still remain unanswered such as is this ‘no revenue share’ an introductory flex or will it continue in the years ahead? If so, how will Spotify win back their podcast investments? We’re also unsure whether all podcasters will be able to participate from the start or if it’ll only be open to select partners. Hopefully Spotify will fill us in soon.