Spotify Rolls Out New Ways To Monetize Podcasts

Spotify Technology SA is rolling out new ways for podcasters to make money from their shows, stepping up efforts after a recent move by Apple Inc. to attract talent to its platform, reports Bloomberg.

The Stockholm-based company debuted a feature Tuesday that lets podcasters mark episodes as only for subscribers. Users can then keep 100 per cent of the revenue they get over the next two years, with a 5 per cent fee coming in 2023. The option will be available in the U.S. to start, and then in other countries in the following months.

The audio-streaming company also is launching an open-access platform that lets podcasts with content on other services share their material on Spotify. And it looks to make it easier for customers to find advertisers for their shows with a new ad marketplace called the Spotify Audience Network.

The rollout follows Apple’s announcement this month that it would let podcasters charge for their programs on its app, with the company taking a 30 per cent cut. The tech giant has been trying to get more of its revenue from services, which brought more than US$50 billion in its last fiscal year.

The move also comes with Cupertino, California-based Apple set to face a European Union antitrust complaint as soon as this week, escalating a probe into Spotify’s allegations that App Store rules are unfair, according to a person familiar with the case.

Spotify’s advertising business is booming. The company credited both podcasts and direct sales for the 110 per cent year-over-year jump in advertising sales to 275 million euros. Advertising now contributes about 12 per cent of total revenue after accounting for less than 10 per cent for most of Spotify’s existence.

The company has spent billions of dollars attempting to expand its service from just music into all kinds of audio. Aggregate consumption of podcasts rose 95 per cent on Spotify from a year ago. That number was 30 per cent on a per user basis.