Introduction
After years of increased competition from Spotify, Apple has announced its own expansion into podcast subscriptions. At the company’s spring event this afternoon, Apple unveiled its plans for a podcasts subscription service that would allow listeners to unlock ‘additional benefits,’ like ad-free listening, early access to episodes and the ability to support favorite creators.
The New Service: Apple Podcasts Subscriptions
The announcement of the new service follows shortly after an industry report suggested that Spotify’s podcast listeners would top Apple’s for the first time in 2021. Apple CEO Tim Cook briefly introduced the subscription at the launch of today’s event, noting that this was ‘the biggest change to Apple Podcasts since its debut.’
Cook also noted the Apple Podcasts app had been updated, with newly redesigned show and episode pages that make it easier to discover new content. The update also includes a "Subscribe" button on each show’s page, making it simple for users to sign up for their favorite podcasts.
How It Works
Podcasters can create subscription tiers for their shows, offering exclusive content to listeners who pay a monthly or annual fee. Pricing starts at around $0.49 per month in the U.S., but creators can set their own pricing. Apple takes 30% of the revenue in year one, then drops its cut to 15% in year two — just like it does for streaming services and other subscription products.
Key Features
- Open Marketplace: It’s an open marketplace where podcasters can choose whether a subscription offers ad-free listening, bonus episodes, access to archival content or anything else.
- Pricing Flexibility: Shows can be fully free, paid or ‘freemium’ where there’s a mix of free content anyone can access, with the ability to upgrade to a paid subscription.
- No Exclusive Deals: Podcasters can distribute their shows anywhere, they don’t have to be exclusive to Apple Podcasts. Presumably, this means podcasters could offer their paid content on other platforms, like Spotify, to increase their earnings.
What’s Next?
Apple is not selling ads for podcasters at this time. Creators keep 100% of the ad revenue. They will, however, be able to track new metrics like ‘most engaged listeners’ and ‘top cities,’ which could help them to tailor their podcast to their biggest fans or plan their next live show.
Subscriptions can be for either individual shows or groups of shows, called Channels. For example, paid podcast subscription service Luminary is a ‘Channel.’ Podcast networks can also be Channels, like Radiotopia. Channels can also be free, paid or freemium, just like individual shows.
Conclusion
Apple’s entry into the subscription podcast space marks an exciting new chapter for creators and listeners alike. With its open marketplace approach and flexible pricing options, Apple is poised to shake up the industry. As always, we’ll be keeping a close eye on developments in this rapidly evolving space.
