It’s happening next week.
Spotify and Apple are popular platforms to look for interesting podcasts. But the former wants to be the no. 1 platform of podcasts. And to achieve that goal, it’s offering its partners podcast subscription options.
But unlike Apple, it will allow creators to keep the subscription fees. It won’t be taking in podcast subscription revenue. That’s at least what Wall Street Journal reported.
What’s the Current Spotify Podcast Offer?
Currently, Spotify has no podcast subscription offers yet through Apple in-app purchases. Spotify is a known vocal critic of the iPhone maker’s policies.
In fact, it filed a formal complaint with the EU because of Apple’s anticompetitive behavior.
In February, Spotify stated that it was testing paid subscriptions for podcasters. This will allow creators to offer exclusive content to their subscribers.
And the offer will start next month. Podcasters can choose their own price. But, unlike Spotify, Apple will take 30% of the revenue of the first year of every subscription. And it will drop 15% thereafter.
The service allows creators to provide early access or unique content to their subscribers.
Why Spotify Choose to Let Creators Keep their Podcast Subscription Revenue?
One reason — to make its offer as attractive as possible. It may also discourage creators to participate in any Apple Podcasts subscriptions.
It may also attract and boost its total number of listeners. Spotify will monetize it through paid plans and ads.
With Spotify’s upcoming offer, it will encourage more partners to create more content using its platform.
This revenue method isn’t something new. Many smaller creators are using Patreon to allow their fans to access their premium content and pay for it.
Besides Patreon, there are other alternatives for creators to host their podcasts, like Libsyn and Audioboom.
However, many of these options will send listeners off-site.
Apple’s and Spotify’s methods offer different advantages. They are two popular platforms. Indeed, creators can put their podcasts in various locations.
However, Apple Podcasts and Spotify are more popular.
But if you use Apple Podcasts, you get more advantages because Apple may already have your subscribers’ payment information.
In that case, it’ll be easier for them to subscribe. It’ll be seamless.
Furthermore, listeners won’t have to leave the podcast page just to access premium content. It’s another attractive feature of Apple Podcasts.
Unfortunately, Apple’s cut can be quite exorbitant. In the first year, Apple will get 30% of the revenue, which is a significant amount of money.
Some creators are worried that the fees wouldn’t work for podcasters with smaller audiences. Podcasting requires time and energy.
And if creators start to charge their listeners, they might stop listening or leave and pay for more popular shows.
And this is one reason Spotify will allow creators to keep their podcast subscription revenue.
However, this no-revenue share agreement may not last long. Spotify will soon take a cut.