Several media companies, including NPR, are making plans for podcast subscriptions on Spotify. These new subscriptions will be available to both US listeners and podcast creators.
NPR is among the first media companies to offer subscriptions on Spotify
Earlier this month, NPR announced plans to launch public radio podcast subscriptions. The initiative is aimed at helping the public radio station engage with the on-demand world, while giving listeners a new way to support their favorite podcasts. In a pilot program, NPR said “tens of thousands” of people subscribed to individual shows. In addition, NPR announced it plans to invest $1 million in a paid advertising campaign this fall.
The NPR and Spotify partnership will provide subscriptions to five NPR shows. These include Morning Edition, Fresh Air, Code Switch, Fresh Air, and Planet Money. In a separate announcement, NPR also announced its partnership with Apple, which will allow NPR podcast subscribers to receive sponsor-free versions of the shows. This will allow NPR podcast subscriptions to be accessed through Apple’s podcast platform, Apple Music, and a variety of other listening platforms.
In addition to the NPR podcast subscriptions, NPR also announced a new digital audio exchange. This exchange provides stations with passive revenue streams for unsold podcast sponsorship inventory. The exchange also provides stations with an opportunity to sell their inventory to other stations in their local markets.
The NPR and Spotify partnership will also provide subscribers with sponsorship-free versions of the shows. In a pilot program, NPR reported that “tens of thousands” of people subscribed in the NPR podcast subscriptions pilot program. However, it is not clear how the NPR podcast subscriptions will work in the final product.
NPR will also provide an Anchor tool for podcasters. The Anchor tool allows creators to mark select episodes as subscriber-only content, which can be republished to other platforms.
The Anchor tool has been tested with a dozen independent podcasters, and is now expanding to creators who are on a waitlist. The simplest explanation is that the Anchor tool is only available to creators in the United States. However, there are plans to expand the tool to include creators in other countries.
Financial terms will be more favorable than Apple’s
During the back half of the fiscal year, Spotify signed multiple exclusive licensing deals for its podcast segment. These deals will pay Spotify a small amount of royalties on every stream of music. The company will pay music labels and composers, as well as individual artists.
While these deals are not yet profitable, they may one day pay off. Spotify has been able to negotiate more favorable terms with labels in the past.
In the meantime, it’s going to have to make do with its own revenue model. Spotify’s podcasts segment is up 10% QoQ and 125+ million users listened to podcasts during the first quarter. The company has signed several high profile licensing deals, including a deal with the DC Universe and Barack and Michelle Obama.
One of the reasons Spotify has been able to secure these deals is its scale. The company has 195 million paid subscribers, and 456 million monthly active users. Its ad-supported MAUs are 1.2 times larger than its premium subscriber MAUs. This means the company has the potential to generate meaningful revenues from podcasts.
In addition, the company is investing in technology to better advertise podcasts. They will also invest in new creator monetization tools. These tools will allow creators to download a list of subscribers’ email addresses and engage with them.
Spotify’s overall gross margin is just below the company’s stated target of 30%-35%. The company also spends 11% of its budget on capex, making its balance sheet less favorable. The company has spent EUR722 million on five large acquisitions in the past two fiscal years.
The company’s CEO says it can generate $20 billion in revenue over the next few years.
Availability to all US listeners and podcast creators
Earlier this month, Spotify announced plans to begin paying podcast subscriptions to all US listeners and podcast creators. This new funding model will help podcasts generate new revenue streams and introduce a new funding model.
Spotify says it has received thousands of sign-ups for its subscription service. However, many creators have complained about the program’s confusing user interface and bugs. They have also complained about the lack of interoperability between different podcast services. In addition, they say the app does not provide clear directions through the app.
As of today, there are more than 4.7 million podcasts available on the Spotify platform. As part of the subscription program, creators can charge their listeners for additional content. The program’s aim is to provide a seamless experience for listeners. Spotify will also make subscription podcasts more discoverable.
Podcast subscriptions are available to listeners in 170 countries. It charges a $20 annual fee. Those who pay will receive access to podcast episodes for the next month. However, they will also have to provide credit card information. In addition to that, there are transaction fees.
Spotify plans to start taking five percent of all subscription revenue in 2023. This is much less than the 15-30 percent that Apple Podcasts charges. However, Apple does not have a paywall on its subscription service. It allows listeners to purchase subscriptions within the app.
While Spotify claims to have more than 4.7 million podcast offerings, its user interface is not easy to navigate. The app does not have a big subscribe button at the top of every podcast page.
Apple Podcasts offers a similar service to Spotify, but they do not have an exclusivity clause. That means that listeners who use other podcast services will be able to subscribe to Apple’s service as easily as they buy the app.
Similarities to Kajabi
Compared to Teachable, Kajabi is a better choice for businesses that already have a tested product or are in the early stages of launching a course. Teachable offers a lot of free tools, but it doesn’t offer many complex marketing features. Kajabi also has a steep learning curve.
Kajabi is a digital product marketing platform that helps online course creators get leads, convert them, and retain them. It has an email marketing system, an affiliate portal, and a marketing funnel. In addition, it has an API that allows users to connect with other platforms. However, Kajabi’s marketing tools have limited customization options.
Kajabi also lacks a course pricing tool. It’s also difficult to build a community on Kajabi. It’s a good platform for passive marketing, but it’s not ideal for building a community.
In addition to the marketing tools, Kajabi also has a customer success manager. This person can give guidance based on your business. Kajabi has also recently released a community product.
The community is primarily meant to be used for individual products, not for groups. However, you can also charge for subgroups and events. And, it’s possible to scale to bundles of online courses and paid memberships. It’s also possible to create live streaming events.
Kajabi also has an email marketing system that you can use to send custom emails to students who complete assessments. The platform doesn’t offer course completion certificates, though. It also lacks an automated payment system.
The company also has a free 14-day trial. If you decide to purchase a subscription, you will receive six one-on-one training sessions each year. You’ll also have access to the Hero Hub, a dedicated support area for Kajabi Access users. The office hours are hosted eight am to 12 pm Pacific time, though they may change depending on demand.
Differences from Apple Podcasts
Compared to Apple Podcasts, Spotify is the best option for podcasters who want to build a subscription model. In fact, the Apple podcast subscriptions and Spotify premium subscription tools are a lot alike. They are both available to podcast publishers through Anchor. And while Apple is pushing its premium subscription tools, Spotify is already making a big push into the podcast world.
The difference between Apple Podcasts and Spotify is that Apple has a better interface and more flexible options for listeners. Apple allows users to change the speed of the app and share links via AirDrop or copying them. There is also the option to AirPlay podcasts to an Apple TV.
Apple Podcasts introduced new Top Subscriber Shows charts last year. These charts are designed to help subscribers find the shows they enjoy. They also have a large library of shows and downloadable content. Compared to Apple, Spotify has a smaller library of original podcasts, but there is no comparison in terms of content selection.
Apple Podcasts also introduced Top Subscriber Channels in August. These are groups of shows with more than 25k subscribers. They include Dateline NBC, which is the third subscriber channel on the charts. However, Apple Podcasts does not have a hub to measure listenership, like other podcast apps. It does have a search bar, but the top charts are not interactive.
Apple also has a larger library of shows than Spotify. For instance, there are 2.2 million podcasts available on Spotify, compared to 450,000 on Apple. Apple has also been actively acquiring exclusive content for its podcast service.
Apple has also been a staunch supporter of the open podcast ecosystem. They’ve been a great partner to NPR and have years of experience handling back-end payments.