Spotify Welcomes Paid Podcast Subscription Feature

Streaming services have gained a tremendous amount of traction over the years, with Spotify remaining one of the biggest names in the business. Competition is fierce, and staying on top—or even just surviving—means constantly searching for new ventures to remain one step ahead.

Audio streaming platforms like Spotify and Apple Music have been home to millions of podcasts for a while; recently, both companies have focused on developing a paid subscription model to access exclusive podcast content, prompted by the lockdown-induced explosion in podcast popularity.

Spotify just launched its subscription feature, with a surprising perk for creators—100% of subscription revenue will belong to the podcasters—well, initially. Spotify plans on taking a 5% access fee starting in 2023.

Their novel feature has been tested by roughly a dozen creators, but it’s now becoming available to those on Spotify’s waitlist. It will only be available to US creators for the time being, but its accessibility is expected to expand internationally in the coming months.

Spotify Won’t Take a Cut From Creators—for Now

Giving all personal revenue to creators seems like a promising business move on Spotify’s part, especially when taking into account its rival Apple Music, whose paid subscription feature is set to launch this month.

Even with the 5% fee two years down the line, Spotify’s offer seems more attractive when compared to Apple’s intention of keeping 30% of podcast subscription revenue during the first two years; this number plans to drop to 15% in year two. Apple is also set to introduce a $19.99 yearly fee for access to the Apple Podcasters Program.

Apple isn’t the only one doing this, however. In reality, it’s common practice for most creator platforms, such as YouTube, Facebook, or Twitch, to take a revenue cut from content creators.

What’s in It for Spotify?

Platforms taking fees from creators has become the norm, so a company deciding not to do so will surely attract (positive) attention. Spotify hopes that its 0% fee policy will attract more creators to their platform, cementing its status as the number one podcast app, outweighing any losses from not taking any creators’ subscription revenue.

In addition, Spotify is spending a lot of money attracting big names to their platform such as Joe Rogan, Prince Harry, and Meghan Markle. Like other creators, Spotify is making sure these online influencers don’t go anywhere by not taking any of their potential profits as well.

In addition to all of their developments, Spotify is teaming up with Facebook for “Project Boombox” to include an integrated version of Spotify’s audio player on Facebook’s app. This furthers collaboration between the two mega companies, as Spotify is already integrated with Instagram and Facebook Stories. The massive user base of Facebook’s platforms will surely bring much-warranted exposure to Spotify..


My eyes rarely take a break from staring at my laptop's screen—I am Big Brother, scanning the web for news and information worth sharing. Full transparency—a substantial chunk of my screentime is also dedicated to watching TV shows, but balance is key, right? Writing is how I choose to share my findings with the world while keeping my love of language and creativity alive.

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