Apparently users of Spotify Premium they will still have to listen to the advertisements if they use the platform for podcasts, although their subscription is mainly appreciated because of the absence of ads.
The streaming music service is split into two: Free and Premium. Users without any subscription can listen to music but sometimes interrupted by advertising. In addition to having limits on reproduction and the choice of music to listen to. Subscribers to the Premium service, on the other hand, receive “no ad breaks,” according to the company’s website. This novelty for the podcast, therefore it may not be welcome at all.
The January 21st the company announced it would begin testing Spotify Podcast Ads in the UK, meaning Premium subscribers who paid to avoid ads will still have to listen to promotional content. Spotify declares that advertising is “one integral part of the podcast industry “.
“All Spotify users receive an on-demand podcast experience that can include ads or sponsorships. Spotify Premium offers users an ad-free experience. It gives all listeners the ability to pause, rewind and fast forward any part of a podcast, including commercials. ” So the problem may turn out to be less serious than expected. Ads are only available on podcasts that Spotify produces, so it will receive money from both subscription fees and company ads.
Spotify Premium Subscription: Ads included for users who use the podcast service
Spotify claims that the 19% listening to podcasts takes place on its platform. In addition to having an important role in the panorama of streaming music together with the Apple Music service. However, it has reportedly never made an annual profit since it launched 12 years ago.
Spotify did not explain how the markets could target users based on the data collected prior to publication. “Podcasts are intimate, they are reliable, they reach people very directly and personally,” said Rak Patel, UK sales manager. Recently, it was discovered that Spotify is paying podcasters tens of thousands of dollars to promote itself, via the podcast creation tool. Anchor, which the company acquired last year.
According to nine podcasters, the main one advertiser who uses Anchor’s advertising feature is Anchor himself. Three podcasters claimed to have made thousands from Anchor and Spotify, compared to the paltry sums of other advertisers, which are few and far between. Three other podcasters said they were looking to leave the Anchor platform in the absence of any new sponsors. Spotify declined to comment on The Verge’s record and did not respond to a request for further information.