The music platform Spotify launches in-app purchases for podcasts. Creators can now have the power to create exclusive content only for paid users. This move will strengthen the earning of people.
Why does spotify subscription for podcasts matter?
Earlier this week, the tech giant Apple has also launched exclusive podcasts where users can avail themselves of the paid content. So to maintain its listener Spotify added a subscription. This feature would roll in the USA, first gradually proceeding to other countries.
Most podcasts creators hesitate to share their work without costs. And to encourage more podcasters, big companies like Spotify should come forward. The podcast industry is growing day by day and to bring some more people on these platforms paid version is the best option.
The paid version pricing of podcasts
Monetization of streaming apps features such as podcasts is a tricky process. Investments are more plus the revenue is not too much to cover all the expenses. Many apps like Apple podcast and Spotify are gambling to gain more revenues in the form of subscriptions. For instance, Spotify has invested $235 million in advertising and marketing tools.
Spotify plans to keeps the subscription amount as low as possible. The starting amount to be paid will be up to $2.99, $4.99, or $7.99.
The new subscription-based episode will have the padlock sign to tell the users that they have to pay the charges to listen further. Creators will have the freedom to choose whichever episode they want them to pay.
How will it work?
New paid episodes will be powered by Anchor, which is a Spotify podcast creator platform. Users can mark all the episodes as paid, or they can exempt some according to their needs. For two years, podcasters can earn 100% revenue from their channel, which excludes the transaction fees. But after that, Spotify plans to charge 5% as the monetization fees from the creator. Over the past year, there has been an increase in several podcast creators. Spotify has revealed that its revenue has increased from 700,000 in Q4 2019 to 2.2 million in Q4 2020.