Apple is making strategic moves to strengthen its influence in the podcast subscription marketplace through the Apple Podcasts platform. Podcast creators can secure prime spots on this platform either by submitting a form or sacrificing some of their profits.
Introduced in 2021, the Apple Podcasts Subscriptions program allows monetization of special episodes and other content. The company subtly nudges independent creators towards this service, offering motives like ad-free listening, exclusive content, and early access episodes. The tech giant takes a small percentage of the subscription fees, creating a mutually beneficial relationship with podcast creators. Meaningfully, listeners also greatly profit from this program as it facilitates accessibility to their favorite podcasts and a vast range of content.
Show placement on favorable spots is affected by internal decisions within Apple. The tech giant has been actively urging creators to join their subscription service ever since its launch. Participation in Apple’s revenue sharing initiative, however, is not mandatory.
As the number of podcasts increases, promotional strategies are vital. Here, Apple’s Podcast App is a frontrunner, having a unique, podcast-centric interface that curates audience-specific content. Coupled with user-friendly design, the app is a valuable tool for podcast promotion.
Apple’s strategic podcast subscription model
Yet, with growing digital competition, search engine optimization (SEO) is necessary for extended reach.
Apple’s podcast feed position plays a significant role in a podcast’s subscription plan. Despite Apple’s higher revenue share (30% of subscriber earnings in the first year, then dropping to 15% in subsequent years), the broad user base and audience could balance out the revenue loss. Initially, the lesser earnings percentage might be offset by a sizeable increase in audience. Over time, the lower 15% revenue share in the following years combined with a larger audience base could indeed lead to substantial earnings.
While Apple is pushing towards podcast subscriptions, it has been accused of manipulating its market power in a legal case. The lawsuit doesn’t explicitly mention Apple’s podcast app, but the company’s aggressive subscription practices suggest a competitive strategy. Apple maintains that their subscription model aims to deliver valuable content to their users. The forthcoming legal process could manifestly impact digital media consumers’ access and app use.
Unlike Spotify and YouTube, Apple avoids overloading feeds with ads from other companies or focusing excessively on monetization. Instead, Apple chooses a subscription-based model offering mutual benefits for content creators and the company. It remains to be seen how effective this approach will be in the long run.
