Spotify on Tuesday launched its podcast subscription service in the US, giving creators more insight into how they choose to make money. The move comes just a week after its big rival Apple announced its own podcast subscription service.
Making money from podcasts has been difficult for streaming companies, as it is difficult to measure the return on an investment in podcast ads. Spotify, for example, has invested heavily in technology with its Streaming Ad Insertion tool and $ 235 million in advertising revenue. Megaphone.
The new Spotify subscription feature is supported by the Anchor platform. This will allow podcasters to mark episodes as subscriber-only and post them on Spotify and other platforms, the company said.
In an effort to attract more creators to the platform, Spotify will not get a share of subscription revenue for the next two years. The company stated that participating creators will receive 100% of their subscribers' revenue, excluding payment transaction costs. From 2023, the company will introduce a 5% charge for the tool. Apple, on the other hand, gets a 30% stake in the first year and in the second year will reduce the fee to 15%.
The company will start the service with a few podcasts and then it will be enriched.
Source of information: cnbc.com