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Apple made a giant announcement yesterday: they're empowering podcasters to charge subscriptions.
They raved about why this is awesome news for podcasters.
It's actually terrible precedent and significantly hampers podcasters' ability to grow their businesses.
Here's why:
They raved about why this is awesome news for podcasters.
It's actually terrible precedent and significantly hampers podcasters' ability to grow their businesses.
Here's why:
1/ Apple has close to zero incentive to do right by podcasters, and their initial terms demonstrate this.
- The transaction fee is 30% (2-3x competitive products)
- Podcasters get no data on their subscribers
- The transaction fee is 30% (2-3x competitive products)
- Podcasters get no data on their subscribers
2/ The fact that podcasters get no subscriber data is more worrying than the steep take rate.
I know something about this because I built and sold @glowdotfm, a platform that empowers podcasters to sell subscriptions.
I know something about this because I built and sold @glowdotfm, a platform that empowers podcasters to sell subscriptions.
3/ One reason podcasting has stayed so small for so long is because Apple Podcasts has made it impossible for podcasters to understand their listeners.
For context, podcast advertising is *still* a sub-billion dollar market.
1/3 of Americans listen to podcasts regularly.
For context, podcast advertising is *still* a sub-billion dollar market.
1/3 of Americans listen to podcasts regularly.
4/ Without direct-listener relationships, subscriptions will remain a small market, too.
Apple gives podcasters no way to:
- Super-serve their subscribers (upsell)
- Learn more about them (customer analytics)
- Retain them (churn management)
Apple gives podcasters no way to:
- Super-serve their subscribers (upsell)
- Learn more about them (customer analytics)
- Retain them (churn management)
5/ These are *basic* subscription management functions, and Apple is giving podcasters no way to perform them.
On the other hand, Apple will have this data & can use it for its own advantage - for example, to identify high-value content targets for possible M&A.
On the other hand, Apple will have this data & can use it for its own advantage - for example, to identify high-value content targets for possible M&A.
6/ It's the antithesis of the spirit of the creator economy.
Unfortunately, podcasters have little power to push back. I hope Apple reconsiders
Unfortunately, podcasters have little power to push back. I hope Apple reconsiders
