Last week, Apple announced a new Apple Podcasts subscription platform that will launch next month, likely as part of iOS 14.6. To counter Apple's announcement, Spotify now announced that it will also allow podcasters to offer subscriptions to their shows on its platform.
Like The Verge reported, Spotify will "initially allow select partners who host their shows on Anchor to charge for content. Twelve independent shows, including Tiny Leaps, Big Changes, and Mindful in Minutes, will offer bonus content only for subscribers, and NPR will launch ad-free versions of popular shows." According to the streaming service, podcasters won't have to pay Spotify anything for the first two years. But starting in 2023, the service will begin taking a 5% cut of total subscription revenue. Apple, on the other hand, will take 30 percent in the first year and 15 percent starting in the second year. Podcasters will also have to pay Apple an annual fee of $19.99 to use the subscription feature. Spotify gives podcasters three monthly pricing options to choose from: $2.99, $4.99, and $7.99.
Spotify forgoes “big subscription button”
Paid content on Spotify is identified by a lock icon where a play button would normally appear. To unlock the show, potential subscribers must navigate to the program's special anchor landing webpage. Podcasters can point them to this link wherever they want - for example, in their show notes, episode descriptions, or in their bio. Basically, they want to put the link everywhere to make sure people can find it.
The Verge notes that Spotify will not have a "big subscribe button at the top of every podcast page." In fact, the service will not display the ability to subscribe to podcasts in its app, meaning Spotify won't have to pay Apple for a subscription that is sold under the terms of the App Store. To subscribe to a podcast, users will have to use the web version of Spotify, which could ultimately lower conversion rates. Spotify also says it has plans to "eventually create a way for podcasters who already run a subscription business outside of Spotify to bring it into the app." On Monday, the streaming service also announced its partnership with Facebook so people can listen to music and podcasts within the app. (Photo by Denys Prykhodov / Bigstockphoto)
