Spotify, the online audio service, announced on Monday that it will open its platform to paid podcasts, a first that deviates from the dominant economic model, which is based solely on advertising.
According to Michael Mignano, co-founder of this Spotify subsidiary, the service will offer a few producers in the United States to launch, in test version, paid podcasts through the Anchor creation platform in “the coming months,” without further clarification. This initiative is part of Spotify’s desire to give audio content creators “the power to choose the best business model for them,” according to Michael Mignano, who presented the platform’s latest innovations.
The main podcast platforms, such as Apple Podcasts, Spotify, iHeartRadio, and Castbox, offer their content for free, which is the format’s historical model, and helps to explain its explosive growth in recent years. Creators are compensated primarily through advertising, the turnover of which is increasing, but at a much slower rate than the content offering.
Also on Monday, Spotify announced the launch of the “Spotify Audience Network,” a platform that allows advertisers to buy ad space in their preferred podcasts.
The service launched its Streaming Ad Insertion program in early 2020, which allows you to insert advertising slots for podcast listeners who listen to the podcast in streaming.