(Hypebot) — Spotify has added paid podcast subscriptions and promised that for two years there will no creator fees.
Spotify’s move is an aggressive response to Apple’s podcast subscriptions which charges creators 15-30%. Spotify could now also serve as a Patreon alternative for some creators.
Participants will receive 100% of the subscriber revenue excluding payment-transaction fees. Starting in 2023, Spotify plans to take a 5% cut.
“We really wanted to come out and show creators that we are offering the best terms… and two years [of no fees] is a great way to do that,” said Michael Mignano, Spotify’s head of podcaster services and tools. “There’s no exclusivity. We’re not locking you into terms.”
There will be three price tiers for subscriptions on Spotify: $2.99, $4.99 or $7.99 per month.
“We felt like rather than put the burden on creators [to set pricing], we should make a recommendation on what we feel are strong price points,” added Mignano.