Spotify has just announced a new means of revenue for podcasters on the platform. News comes from the company site that there is a new Spotify podcast subscription program that has just launched. This is a move to help independent creators on their platform.
Users will have the ability to subscribe to their favorite podcasters.
Listeners who love a podcast and want to help support the creator will have the ability to subscribe to their podcast. When you go to the podcaster’s page, you will see a padlock icon in place of the play button. This will give you the option to unlock the content behind the paywall. Creators who choose which content that they want to be for subscribers’ ears only.
Those who want to put their podcast behind the paywall will have to wait for a bit, however. This is a gradual rollout. At the moment, there are only 12 podcasts supporting paid subscriptions. NPR will also broadcast ad-free versions of their shows on the platform.
There’s an understandably lengthy waitlist of hopeful podcasts that want to start monetizing their content. Spotify says that they will add more podcasts in the coming months. Like with its partnership with Facebook, Spotify refers to this as a move to aid independent creators.
The Spotify podcast subscription will be free for creators for the first two years
Spotify will take their cut of the revenue that creators generate- but, what else is new? However, Spotify may have the best deal out there for creators. From now until 2023, Spotify will not charge creators a dime to monetize their content. They will be able to keep 100% of their income. Starting in 2023, the company will place a 5% transaction fee for the podcasters. This is still really low compared to other platforms. Apple charges between 15% and 30% per transaction.
What’s uncertain is if this fee may rise any time in the future. What’s also uncertain is when in 2023 these fees will start being taken. We’re almost half way through 2021, so we’d hopefully see the fees coming half way through 2023.
You will not be able to subscribe from within the app
Funny enough, you will not be able to subscribe to podcasts from within the app. This means that you would have to go to the browser version of Spotify or Anchor to subscribe. You can still listen to your subscriber-only content on the app.
According to The Verge, you’ll have your pick from three subscription tiers. There’s a $2.99/month, $4.99/month, and a $7.99/month tier. Spotify hasn’t said what you’ll get via each tier. It may be similar to Patreon where creators can pick what content will be available at each tier.
Spotify has been making some ambitious moves recently. Ventures like its Car Thing and Project Boombox make us look forward to what the company will have in store for us next.