Spotify Is Launching Podcast Subscriptions, and Unlike Apple Won't Take a Cut From Creators (variety.com) 11
Spotify wants to be the industry's No. 1 distributor of podcasts -- and it's willing to forgo some revenue in order to counter Apple's push into podcast subscriptions. From a report: Next week, Spotify will launch its podcast subscription option for partners. But the company will be letting content creators keep 100% of the subscription fees: Spotify will not take a cut of podcast subscription revenue, sources confirmed, as first reported by the Wall Street Journal. By contrast, Apple will keep up to 30% of podcast subscription fees under its program, which is launching next month. Currently, Spotify doesn't allow customers to pay for subscriptions through Apple in-app purchases -- and Spotify has been a very vocal critic of Apple's App Store policies, which has included lodging a formal complaint with the European Union alleging anticompetitive behavior. Similarly, you won't be able to purchase Spotify podcast subscriptions through Apple.
They arent taking a cut? (Score:3)
Re: (Score:2)
I thought that podcasts were free.
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Not all podcasts are free. Almost every pod cast that I listen to has a free version for the masses, and a paid version with extra content that you can subscribe too.
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The lister must be the product in some way.
If they can afford to stroke Joe Rogan a $100 million dollar check, pretty sure they've got other sources of revenue.
Sounds like it could be as simple as it sounds; Spotify vs. Apple. Best Fuck-You-I-Win price that is guaranteed to not have your potential customer base quabbling over who is 50 cents cheaper, is free.
Well...free, for a while.
Shades of 1995 (Score:1)
This seems like Spotify's version of "$299" [youtube.com].
Business model (Score:2)
Spotify will not take a cut of podcast subscription revenue
That is kind of them, but what is the business model? As a for-profit company, aren't they supposed to make some money at some time?
Re: (Score:3)
Seems very obvious to me where the money is going to come in for this. The pay out for Spotify is your ears. The podcast is free but you ether have to be a Spotify member to get them or suffer through ads on the stream. Hosting and broadcasting the podcast itself cost them nothing, they don't even have to pay for content.
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As a for-profit company, aren't they supposed to make some money at some time?
Apple is a for-profit company. No evidence that Spotify is.
...as a customer (Score:2)
Itâ(TM)s Called a Loss Leader (Score:3)
The universal truism, TANSTAAFL, applies here.
As others have noted, "If you're not the Customer, you're the Product."