Spotify vs. Apple: Subscription Podcasts

On the heels of Apple's (NASDAQ: AAPL) announcement that it will offer podcast creators a platform to provide paid subscription services through its native podcast player, Spotify (NYSE: SPOT) is launching its own subscription podcast option as well. Spotify teased subscriptions back in February.

The two companies are taking different strategies to subscription podcasts, leaning on their respective strengths. And that means they can both win.

The main difference most have noted about Apple and Spotify's offering is the price. Apple is charging podcasters $20 per year for access, and it's taking a 30% cut of subscription revenue for the first year of a subscription and 15% of revenue thereafter. Podcasters using Spotify's platform will only pay for payment processing for the time being. The company plans to start taking a 5% cut of subscriptions in 2023.

Source Fool.com