Apple has been busy because recent reports have suggested that Apple is working on podcast services. Apple Music is already there but Apple loves to enter into the new streams. To begin with, they are working on the paid podcast subscription services, or it wouldn’t be wrong to say that they are having a serious perspective on one. Apple already has the Podcasts app and they have developed podcast distribution services for iOS and macOS platforms.
On the contrary, they haven’t monetized the features for now. It’s safe to say that the iTunes store and iPod has played an influential role in making the podcasts popular and it’s only the logical enhancement. For now, some observers are suggesting that Apple might be working on the premium services. According to these reports, Apple will seek the offer for exclusive content to the subscribers through the enticing of the podcast creators. The podcast creators are switching from Spotify, Siri, and Amazon to Apple.
For this purpose, it’s essential to note that Spotify has already invested $800 million for the acquisition of the podcasting companies. At this point, it’s only safe to say that Apple is feeling the competitive urge to match with Spotify because they have money to do so. In case Apple launches the podcast subscription service, it might be launching it as a service with Apple TV+, Apple Music, Apple News+, and Apple Arcade; it will be integrated into the Apple One pricing bundle.
In addition, the reports suggest that along with the purchase of original content, Apple might consider the development of movies and program spinoffs that are already broadcasting on Apple TV+. This news is solidified since Apple has already hired the radio industry executive, Jake Shapiro for leading the team that’s curated with the podcast creators. According to Nicholas Quah, there are chances that this paid service will deliver consistent result and shall beat the free alternatives.
On the contrary, some people are countering that they are already paying for the audiobooks. However, Quah has outlined that audiobooks are rather a digital retail business than the media business since it depends on the book publishing. In addition, the Apple TV+ service is ambiguous for now and the majority of subscriptions aren’t paid for but have a broad distribution arrangement. As far as the investment is concerned, there are various notes.
In the first place, there might be a strategic sense for an attempt for monetizing the podcasting ecosystem and infrastructure. However, it is still vague if a podcast could become the profit or income generation stream for Apple. With this being said, Apple hasn’t commented on this matter but the reports have been confirmed by various news outlets at a time. In addition, Apple has also asked the podcast studios to sign the NDA regarding their association and development with Apple.
In the same way, Apple is highly like to have an immense marketing budget for advertising their monetized podcasting infrastructure. All in all, these talks started back in last year’s fall, so let’s see what shape it will take!