Spotify lets podcasters turn loyal listeners into paying fans, with 90% of the revenue theirs to keep
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Spotify has spent years devising new ways for podcasters to earn money on the platform. From advertising to video engagement, it keeps dangling new earning opportunities for creators. Now, it’s letting fan loyalty translate into direct payments.
The audio streaming platform is rolling out Memberships today (similar to YouTube Memberships) in 34 markets, letting podcasters sell fans exclusive content and perks directly through the app.
How do Spotify Memberships work?
A fan opens a show’s page, spots the Membership option, signs up, and pays. That’s it. The exclusive content unlocks immediately. But that also means your favorite podcaster might get a little more expensive to keep up with (if they leverage the feature).
Creators decide what’s behind the paywall. It could be early access, fewer ads, bonus episodes, or members-only audio and video. They can even package the content into different tiers at different prices.
The platform also offers free trials and targeted promotions. It will also offer analytics showing which listeners start paying. For the members, creators can offer member badges and welcome clips (coming later).
Spotify says creators take home 90% of what Memberships bring in, on top of ads and the Spotify Partner Program. While there’s no direct comparison, YouTube shares 70% of membership revenue.
Who can start a Membership?
A show must be hosted on Megaphone or Spotify for Creators (Spotify’s podcast hosting services) and have three published episodes, 100 people listening or watching, and 100 hours of consumption (total time people spend listening or watching) to qualify for releasing memberships.
I’d say that bar is low enough for plenty of small shows, which is clearly the point. Podcasters who run paid subscriptions elsewhere can still bring those episodes to Spotify through Open Access.
For those catching up, Spotify previewed Memberships at its May 21 Investor Day. In September, it also said its Partner Program, which pays shows for video and ads, is expanding to more than 35 new markets.
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