Apple has decided to start funding podcasts in order to compete with Spotify. The news had a negative effect on Spotify stocks which took a 2 percent hit. Apple’s focus on podcasts is only likely to impact Spotify’s plans to become the one-stop-shop for all podcast needs.
Bloomberg reported that executives have reached out to media companies and content creators in a bid to buy exclusive rights to podcasts. It is worth noting that Apple invented Podcasts by building a network of thousands of podcast across the globe. As far as userbase is concerned, 50% to 70% of all podcast users make use of Apple’s Podcast app.
Last year, Apple launched Podcast Analytics, a service that helped the user understand their target audience and other useful statistics. This was soon followed by a standalone Podcasts app for Mac.
Apple’s arch-rival Spotify has already spent close to $400 million to acquire podcast companies. Spotify has also funded original shows and currently accounts for 10% to 20% of market share. Apple installs its podcast app on all the devices and starting with macOS Catalina the Podcasts app is standalone. Currently, Spotify is the second most preferred player when it comes to podcasts.
Apple is increasingly focussing on its services. Recently Eddy Cue said that Apple Music has amassed 60-million subscribers and is steadily closing the gap between itself and Spotify. Apple is also set to gain by growing its Podcasts business and adding a bunch of exclusives. This is something that will further add exclusivity to Apple devices.