Apple announces the launch of its in-app subscription service for podcasts

Apple announced a major change in podcasts at the launch event this morning: the launch of an in-app subscription service. Apple said that users will be able to subscribe to content such as ad-free content, rewarded content, and early access rights within the app. This feature will begin to land in 170 countries and regions next month.

Apple Podcasts
Apple Podcasts

The first batch of partners includes Pushkin Industries, QCODE and NPR. Content creators seem to have to pay Apple $19.99 per year to provide users with subscription services, and Apple will charge 30% of the revenue in the first year of the subscriber’s life cycle, and 15% of the revenue in subsequent years. This means that if the subscriber-only subscribes for one year, then 30% of the user’s fee must be paid to Apple. Podcast producers are incentivized to keep subscribers longer.

Podcast producers must upload their subscription content through Apple’s backend, not through RSS and their hosting provider. However, their regular feeds can still be operated via RSS. Because subscription content is made through Apple, podcast producers will not receive specific data about paying listeners, such as their email, name, or contact information.

In addition, the app has redesigned its channels to help users better find new content curated by their favorite creators. These channels will feature art, titles, and descriptions unique to Apple Podcasts. Some of these channels may promote free content, while others require payment.

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Luminary, a subscription-based podcasting application launched in 2019, will become Apple’s initial channel partner. The company said today that people will be able to subscribe to Luminary programs through Apple Podcasts and Luminary apps. The Athletic seems to provide similar settings.

Other new features include a “Smart Play” button, which will allow listeners to automatically start playing the show from the latest episode. Listeners can also save individual clips, which can be downloaded for offline playback.

Overall, Apple seems to be more interested in creators who use its platform to reach audiences. It is widely speculated that Apple will launch a subscription service to promote its own original content, which will focus on TV+ supporting programs and book content.

Now, Apple seems to see an opportunity to make money from the podcast itself, rather than investing in its own exclusive shows. This may allow Apple to more directly compete with platforms such as Patreon. However, Patreon only charges 12% of subscription revenue, so it seems unlikely that successful podcasters will switch their mode to Apple’s exclusive podcasts.

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