Spotify Opens To Paid Podcasts: How Does It Work?

A few days after Apple, Spotify announced the launch of premium subscriptions for access to certain podcast episodes. The apple brand had introduced it during their last keynote, here is their main competitor in music streaming and the podcast was quick to host. Important news for the industry.

With Spotify as with Apple, podcasters will soon be able to offer some – if not all – of their episodes as a paid subscription. The listeners cannot hear the audio if they prepaid for the program. A way to finally open the world to compensation when it hadn’t yet found a balance for its business model.

What are the differences between Spotify and Apple?

Spotify brought the news Tuesday, two months after the issue was raised in a wider conference on corporate goals. In contrast to Apple, which wants to make the function available to everyone from May, Spotify will take longer. Only US and partner podcasts are eligible for the feature to start, and the rest of the rollout will “take several months”.

An exclusive anchor on Spotify

The streaming platform doesn’t host the podcasts it broadcasts. The operation of podcasts differs, for example, from videos with YouTube, in which the channels upload their videos directly to the platform. Here, each podcast is hosted on the web, on a dedicated platform or on a personal server, and its stream is then offered on streaming platforms.

In order to be able to offer paid podcasts on Spotify, it is essential to use the anchor hosting platform that Spotify purchased in February 2019. A press release states that the teams will work on one system so that the other hosting program providers can offer the option, but nothing is clear on this point.

Conversely, Apple does not specify a specific platform. The goal seems to be even more to please all podcasters than just new ones looking for a platform to host their podcast on, like Spotify with Anchor. In addition to reserving specific episodes for paid subscribers, Apple Podcasts also offers ad-free content, early access to episodes, examples to help you identify the content, and more.

Platform Commission

In terms of compensation, Spotify does not take any commission on subscriptions paid to Podcer. At least not until 2023. At that time, Spotify announces that it will pay a commission of 5%. In order to avoid having to repay part of the future commissions to Apple for in-app purchases on iOS, Spotify asks its users to sign up via the anchor profile of their preferred podcasters.

Apple, on the other hand, is much more rigid. 30% of the subscriptions go to the brand in the first year, then that commission is reduced to 15%. Additionally, podcasters have the option to purchase a subscription of $ 19.99 per month to access detailed statistics about their target audience.

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