We’re going to explain exactly what paid subscriptions from Spotify are, how they work, and if the average listener will lose their free content forever.
What Are Spotify Paid Subscriptions for Podcasters?
With the help of Anchor, Spotify has introduced paid subscriptions for all podcasters. Anchor is the major platform Spotify uses for its podcasting creator hub.
Paid subscriptions allow podcasters to upload their content behind a paywall to entice listeners to subscribe to get access to all their content.
The concept isn’t a new one. Apple has its own version of paid subscriptions that it announced in April 2021. The paid subscription feature from Spotify is meant to directly compete with Apple and has enough advantages to do so.
At first, only 12 podcasters were given early access to the paid subscriptions feature on Spotify to test it out with their listeners and give feedback on how it can improve.
US residents are first in line to be able to use the feature and it will pay to be on the bandwagon early. Anchor has mentioned it plans on allowing podcasters to keep 100% of the profits from paid subscriptions, though only until 2023.
At which time, Anchor will begin taking a 5% cut from all paid subscription fees. Normal transaction processing fees will still be charged. So the earlier a podcaster can become a part of the program, the more revenue they stand to gain.
Anchor has also included independent creators in its Spotify Audience Network which connects advertisers with podcasters for mutually beneficial partnerships.
How Spotify Paid Subscriptions Work for Creators
Podcast episodes that are marked as subscription-only will be discoverable and searchable like any other content on Spotify. You can either use the search feature to find podcasts with paid subscriptions or other creative ways like using Spotify’s podcast charts to find new creators.
All episodes that require a paid subscription will be marked with a lock icon where the play button is so listeners can easily identify them.
To gain access to paid subscriptions as a podcast creator, you need to sign up for the waitlist while Spotify continues to test the feature with the 12 initial podcasters.
Larger podcast shows like NPR are using the paid subscriptions feature to upload its content without any paid advertisements. The aim here is to provide a seamless experience for its listeners.
Once accepted, podcasters can set a monthly price they require for listeners. There is no annual payment option at this time. Creators have an option to choose from three different payment methods including $2.99, $4.99, and $7.99.
Listeners will also have the option to listen to podcasts on any device with a private RSS feed, removing the possibility of losing a listener because they didn’t have the right platform.
Another incentive of joining paid subscriptions is early access to the Q&A feature that allows listeners to engage directly with the podcast.
Other possibilities Spotify is working on are the ability to contact listeners directly and the ability to offer subscriber perks like merch, promo codes, and more.
How to Subscribe to a Spotify Podcast as a Listener
As mentioned previously, you can find paid episodes right alongside all the other free episode content available.
The only problem is that you can’t directly subscribe to a podcast in-app. Instead, you have to visit the podcaster’s Anchor landing page.
The link to the landing page isn’t easy to find and is peppered in the descriptions of podcast episodes. Listeners might have a hard time navigating to the landing page since there aren’t any obvious directions through the app.
The reason for the runaround is that Spotify doesn’t want to have to pay Apple by accepting subscriptions directly in the app. This would force Spotify to give Apple a piece of every transaction made.
One of the easiest ways to find a creator’s landing page is by using Google.
Use Google to search for “podcast name + Anchor” Select the correct link Select Subscribe Select payment option Complete payment
Once payment is complete you will have open access to all the podcast episodes for the next month, until you are charged again.
Do Other Services Offer Paid Subscriptions?
There are lots of smaller podcast platforms attempting to offer paid subscriptions for its creators. The only problem is that none of these platforms have the built-in audience that Spotify can proudly claim.
Apple also offers paid podcast subscriptions for its creators and is the only major competitor to Spotify at this point. The only red flag is that Apple is taking a bigger piece of the pie than Spotify.
To start, creators using Apple will have to pay an annual fee of $19.99 just to use the feature. Not to mention the exorbitant 30% fee they take off the top of every single transaction throughout the first year.
Perhaps as a saving grace, Apple only takes 15% after the first year for every year thereafter. Larger and more established podcasters can afford to foot this bill in order to reach the millions of listeners that Apple brings to the table.
Now that Spotify has come out with its own paid subscription feature that is free to use, Apple may have to reconsider its requirements.
Apple does a better job at providing more payment options for creators when starting a paid subscription. Spotify only has three options for creators, but Apple has much more than that.
Apple has also stated it doesn’t plan on allowing podcasters to talk directly to their audience, except during an actual episode. This makes it harder for podcasters who establish themselves on Apple to move away at any point if the relationship turns sour.
Spotify, on the other hand, has plans to allow podcasters to engage with their audience in as many ways as possible.
The other problem is Apple won’t be distributing the paid episodes over RSS, but will be using a closed system specific to Apple Podcasts. It’s clear that Apple believes it owns the audience, whereas Spotify is making an attempt to work with creators first.
Get Paid Using Spotify Paid Subscriptions
Now podcasters have more options to monetize their growing fan base and previously free content. Adding paywalls on Spotify allows podcasters to get paid depending on how many subscribers they can get.
Spotify’s continued investment into podcasts makes it one of the best choices for any podcast fan or creator.
