Apple plans to fund its own original podcasts after the reports suggested that, Spotify has dropped the stocks over 1%. Apple executives are in talks with media companies to buy exclusive rights to the podcast. Apple is yet to outline the strategy but has planned to step on markets they have never stepped before.
Spotify is investing heavily on the original podcasts. CEO Daniel Ek said it planned to spend $400 million to $500 million on original podcasts this year, additional to the purchase of Gimlet Media and Anchor, two podcast start-ups.
Apple to Upgrade the Podcasting Business
Apple’s Podcasts app is installed by default on iPhones and is one of the most used podcast app. Apple accounts for 50% – 70% of listening for the most podcast. The app was launched in 2005 and yet has not gone any changes until the company recently decided to upgrade it by adding new tools for podcast makers. Yet, new entrants have encroached on Apple’s once- indomitable position, attracting new users by offering exclusive access to original podcasts.
Last year, Apple launched Podcast Analytics, introducing a service that gives podcast makers more insight into their listeners and performance. This year, a dedicated Podcasts app for Mac computers was launched in addition to a web interface to expand the number of people who can listen to podcasts through its service.
The Industry is Rapidly Growing
In the past three years, Apple sales have grown 65% while the numbers of monthly listeners to podcasts have doubled over the past five years. While Spotify in the competition is growing quickly and gained a very strong 2nd place in the listening platform. Podcast listeners of Spotify tend to spend more time in-app, which means they listen to more music and audio files.
Nevertheless, growing the Podcasts app and giving additional services could give the users another reason to stick to their iPhone or subscribe to complementary paid services like Apple Music. Apple Podcast app is still the number one app, but Spotify is catching up fast.