Subscriptions are not the future of podcast monetisation
As markets fragment and niches grow, the need for meaningful, high-value exchanges between creators and their followers has never been more pressing. Yet, only a select few creators manage to transform direct subscriptions into a sustainable living wage. For many, diversifying revenue streams is essential for achieving economic stability.
Podcasting exemplifies this challenge, as its origins are rooted in free content, akin to traditional radio. The majority of podcast revenue still relies on advertising, which complicates the path toward subscription-based monetisation. While some podcasters succeed in turning their dedicated fanbases into paying subscribers, the broader landscape reveals a struggle to effectively implement paywalls for podcasts. Creators can entice fans to pay for premium content with free offerings, but platforms that offer podcasts can work in reverse, leveraging premium subscriptions for other formats to draw listeners into the podcast world, subsequently monetising them through targeted advertisements.
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The rise of multi-format digital environments enables platforms to enhance podcast advertising revenue via indirect subscriptions, such as Spotify Premium and Amazon Prime. Subscribers to these platforms tend to have higher disposable incomes and spending habits, making them an attractive target for advertisers because they are harder to reach through traditional advertising channels. This unique strength positions podcasts as an appealing option for advertisers looking to engage affluent consumers.
To maximise their potential, podcast platforms must recognise and embrace this distinctive value. Understanding the earning and spending behaviours of podcast listeners can provide invaluable insights for platforms aiming to leverage this value. Instead of getting caught in the challenging pursuit of podcast subscription revenue, focusing on optimising advertising opportunities may yield better results for platforms. Subscriptions may not represent the future of podcasting monetisation directly, but they certainly still matter for platforms, advertisers, and creators looking to engage podcasting’s high value audiences.
To learn more about earning and spending behaviours of podcast listeners, download MIDiA’s new report here.
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