According to news, Apple is working to add a new subscription service to its podcasting business in 2021. It is trying to generate more revenue, with funding for new original programs and removing creators from Spotify and Amazon are attracted by competitors.
Apple has discussed plans to create subscription services with partners, which may include exclusive content, and talked about increasing funding for new programs and marketing. However, the price of this service is not yet clear, nor is it clear when it will be launched.
For more than a decade, Apple has been the leading distributor of podcasts in the United States, providing these programs for free. But the company now faces fierce competition from its two biggest competitors: Spotify and Amazon.
Apple is also under pressure to get more revenue from the service business, not just a big winner like the iPhone. Subscription to podcasts will promote this goal. According to a previous report, Apple is increasing its efforts to promote original podcasts, partly because of trying to promote its Apple TV + video service.
Recently, the company released an Apple One subscription bundle that is important to include podcasting services. By charging users to listen to programs, paid podcast services can allow creators to make more money. This may help Apple attract podcast creators and boost the company’s service business revenue.
Apple is seeking to create original podcasts based on Apple TV+ shows, and it acquired podcast studio Scout FM earlier last year. A person familiar with the matter recently revealed that Apple will launch a new Apple Podcasts + service this year, and it may be unveiled at the press conference in March.
Apple’s podcast platform has long been synonymous with the media. In fact, the iPod helped create the entire industry. However, so far, Apple has not tried to monetize this podcast platform.
The launch of paid podcast subscription services will echo Apple’s move to monetize some of its platforms, such as Apple News and Apple’s streaming music service Apple Music.
This move may also threaten companies in the podcasting industry such as Amazon and Spotify that are rapidly growing. A few years ago, both companies have taken measures to get more control over the market through acquisitions and signing exclusive contracts.
Spotify has invested hundreds of millions of dollars in podcast programming and technology and has taken away many of Apple’s most popular podcasts. The popular podcast ‘The Joe Rogan Experience’ (The Joe Rogan Experience) abandoned the Apple platform in 2020 and became an exclusive podcast on Spotify.
Spotify has replaced Apple as the leader in streaming music. By integrating podcasts with its music services, the company threatened to do the same in the podcast market. In many regions outside the United States, Spotify has surpassed Apple as the leading provider.
Amazon, a competitor of Apple in the smart speaker market, is also increasing its investment in podcasting. The company provided funding for the original series of its audiobook division Audible and added podcasts to its music service. In December of last year, Amazon acquired the podcast startup Wonders. According to reports, the company was also a potential acquisition target for Apple.
It is unclear how big the commercial scale of podcasts can be. Luminary, a podcast startup, has been working hard to attract customers to its subscription service, charging $2.99 a month for exclusive podcast content. But Apple is indeed in a better position than Luminary. There are already tens of millions of people listening to podcasts on pre-installed Apple apps, and hundreds of millions of people have Apple devices.
(Via)
