What you need to know
- Apple will take a 30% cut on podcast subscriptions in the first year.
- It will drop that fee to 15% on subscriptions more than a year old.
Apple will take its standard cut on new podcast subscriptions.
Apple announced Podcast Subscriptions at its 'Spring loaded' event earlier today as a new way for podcasts to earn money from its listeners. Details of how the financial side of that would shake out were not discussed during the event, but those details have emerged.
As reported by Vox, Apple will take its usual 30% cut on podcast subscriptions in the first year someone is subscribed. After that, their fee will drop to 15%. This is the same standard practice that Apple employs for apps in the App Store.
The report also revealed that podcasts could charge as little as 49 cents a month for their podcast.
- Starting next month, Apple will let podcast publishers sell subscriptions to individual shows or groups of shows, and set their own pricing, starting at 49 cents a month in the US.
- Apple won't require podcasters to create Apple-only exclusive shows, but it does want them to distinguish between stuff they're already distributing via Apple and stuff going up on other platforms: That could mean ad-free shows or shows with extra content or brand-new shows that only exist on Apple.
- Apple will keep 30 percent of any subscription revenue creators generate in their first year on the platform. After that, Apple's cut will drop to 15 percent. That's the same pricing scheme Apple already uses for other subscription services, like TV streamers.
Podcast Subscriptions will be available when Apple launches iOS 14.5 next week.