After Apple announced a podcast monetization scheme, Spotify followed suit, and developers can now bill subscribers for exclusive content.
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April 29, 2021 4 min read
This article was translated using AI technologies from our Spanish edition. Errors can occur due to this process.
Audio content is becoming increasingly popular and can now be an interesting source of income through Spotify. The streaming music app has launched a podcast subscription program that developers can use to make money by offering exclusive paid content.
This Tuesday, Spotify launched its new monetization program in the US and plans to expand it to other regions and add more writers in the coming months.
Initially, the option is only available to a select group of 12 podcasters, including Tiny Leaps, Big Changes, and Mindful in Minutes. Creators who want to access the subscription scheme can submit their proposal today to sign up for a waiting list.
In addition, Spotify promised not to charge the developers any commission, at least initially. The only commissions they have to accept are those from Stripe, the electronic payment manager that the platform was connected to.
“For the next two years, this program will have no cost to the creator, which means they will get 100% of the income from their subscribers. Starting in 2023, we plan to roll out a competitive 5% rate of access to this tool, “Spotify said in a statement.
This is how podcasts work for Spotify subscribers
Once authorized by the platform, authors who want to monetize exclusive content must host the podcast on Anchor. Recall that Spotify bought Anchor for $ 110 million in February 2019.
We’re creating more opportunities for more podcasters to monetize their work. Find out more about Spotify’s paid subscriptions and open access platform, and how independent creators can now use the Spotify Audience Network. https://t.co/IxZUWTeIrm
– Spotify News (@SpotifyNews) April 27, 2021
Once the episode has been uploaded, you need to enable the “Subscribers Only” option. Podcasters can also choose to shut down their podcast entirely or pay for just part of its content.
The price is pre-set by Spotify, and podcasters can choose between three amounts: $ 2.99 (about 60 Mexican pesos), $ 4.99 (about 100 MXN), or $ 7.99 (160 MXN) per month.
According to The Verge, Spotify will allow the import of paid feeds to other platforms. That is, if a person decides to subscribe to a podcast through Spotify, they can listen to it through another application (Overcast, Pocket Casts, etc.).
Subscriber-exclusive audios can be browsed within the streaming service and are even recommended in the main feed of a program, but are marked with a lock symbol on the play button.
Spotify vs. apple
Spotify’s announcement comes just a week after Apple CEO Tim Cook unveiled a similar service at Apple’s first event in 2021.
Starting in May, Apple Podcast creators will be able to choose whether or not to sign up for the subscription service. This has an annual cost of $ 19.99 (about 400 Mexican pesos) and gives access to the tools that can be used to activate the payment wall and other related options.
In the case of Apple, the company sets the price for subscriptions and retains 30% of income at the beginning and 15% from the first year.