The battle for audio market is raging as most social media platforms are launching audio division within their respective companies.
This comes after the news that, Spotify is launching Podcast Subscriptions, and unlike its competitor Apple is not planning to take a cut from creators.
According to Variety, Spotify wants to be the industry’s No. 1 distributor of podcasts — and it’s willing to forgo some revenue in order to counter Apple’s push into podcast subscriptions.
Next week, Spotify will launch its podcast subscription option for partners. But the company will be letting content creators keep 100% of the subscription fees: Spotify will not take a cut of podcast subscription revenue, sources confirmed, as first reported by the Wall Street Journal.
By contrast, Apple will keep up to 30% of podcast subscription fees under its program, which is launching next month. Most creator platforms, including YouTube, Twitch, Facebook and Patreon, also take a cut of subscription fees and/or fan payments.
Meanwhile, in conjunction with Spotify’s podcast subscription rollout, Facebook plans to launch an integrated version of Spotify’s audio player — a project called “Project Boombox” — starting next week to provide access to songs and podcasts directly within the Facebook app.