Wednesday , March 3 2021

Spotify opens its platform for paid podcasts

Spotify opens its platform for paid podcasts

Spotify logo Martin BUREAU

The online audio service Spotify will open the platform for paid podcasts, he announced on Monday, the first to break the dominant financial model based solely on advertising.

“In the coming months,” the service will offer a few producers in the U.S. to launch trial podcasts through the Anchor creation platform, said Michael Mignano, founder of this Spotify subsidiary.

This initiative is part of Spotify’s desire to give audio content producers “the power to choose the best business model for them,” Michael Mignano said in a presentation introducing the latest innovations.

Major podcast platforms, Apple Podcast, Spotify, iHeartRadio, or Castbox, offer content for free, a historical model of this format that partly explains its unbridled growth in recent years.

Content producers are paid mainly for advertising, which generates revenue, but significantly less than content supply.

In July, the IAB / PwC’s annual report predicted 14.7 percent growth in U.S. podcast advertising revenue in 2020 to approach $ 1 billion.

The figure is quite modest compared to the expected $ 12.6 billion in advertising revenue for U.S. local radio stations in 2021, according to BIA Advisory Services.

Paid podcasts already exist, but so far they represent a minority of the market.

Also on Monday, Spotify announced the launch of the “Spotify Audience Network,” a platform that allows advertisers to purchase ad space on podcasts of their choice.

In early 2020, the service launched the Streaming Ad Insertion program, which allows you to add ad slots to podcast listeners in streaming.

Unlike downloading a historical podcast listening mode, streaming allows listeners to better target, but also gathers information about the impact of the ad.

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