Spotify has reportedly rolled out paid podcast subscriptions as a newly launched feature on the platform’s podcast creation tool, Anchor. The company announced this launch at their ‘Stream On’ event in February.
Using Anchor, podcasters will now be able to release select content exclusive to subscribers, which can be published on Spotify and other platforms. Over a dozen independent creators have tested this service, and it is now being expanded to creators registered on the waitlist.
As of now, Spotify is releasing this feature to content creators in the United States. However, the company aims to expand it across the world in upcoming months.
The podcast market, particularly for paid podcasts, is rapidly growing and this launch seamlessly syncs with the ongoing market trend. Last week, Apple declared that they have their own plan for subscription-based podcasts through their Apple Podcast platform, which is considered a leading platform when it comes to consuming podcasts.
However, the subscription revenue breakdown of Spotify is different from that of Apple’s. Apple has reportedly said that in the first year, they will be taking a 30% cut of the total podcast revenue. This cut will be brought down to 15% in the second year. This is the same system that is applicable to streaming services on the company’s App Store.
Meanwhile, Spotify said their program will be launched to creators at no cost for the next two years. It means that creators will keep hold of the entire revenue. The company then plans to get an access fee of 5% from Spring 2023.
The test group of 12 podcast creators will commence publishing their subscribers-only, paid bonus episodes on their feeds. These podcasts will be searchable and discoverable just like any other content on the platform. The paid episodes will appear on the main feed of the podcast, where the play button will be marked by a lock symbol.
The subscription cost structure will be one of three tiers $2.99, $4.99 or $7.99 per month. However, the cost will be decided by the creator.