Spotify is best known for the millions of music albums and songs that it includes, but in the past few years, it has begun to also take over the world of podcasts. Subscribers can now enjoy a huge selection of podcasts in both audio and video formats.
How much do podcasts make on Spotify?
Unlike musicians who are paid per stream, podcasters only make money on Spotify if there is a licensing agreement for their content. Podcasts can get a lot of exposure on Spotify, which can then be turned into revenue through advertisement deals and audience donations.
Many podcasters feel aggrieved that they are not paid in the same way that musicians are on popular streaming platforms like Spotify, but there is an argument that the exposure that can be gained through building an audience on Spotify is easy to monetize.
There’s a lot to discuss, so let’s get into it.
Do Podcasters Get Paid by Spotify?
With the rise in popularity of streaming platforms like Spotify, the way that audio content creators are financially rewarded for their work has changed dramatically.
Until late 2018, Spotify had operated almost exclusively as a music streaming platform. When the company announced that it would be allowing its users to upload and enjoy podcasts, many podcasters saw this as a new opportunity to build an audience and reap the financial benefits.
However, unlike musical artists who earn a certain amount for each play that their songs receive, the vast majority of podcasters receive no revenue from Spotify.
Spotify has paid a select number of podcasters to license their content on the platform, in some cases signing exclusivity deals so that their podcasts cannot be consumed anywhere else.
In these scenarios, the podcaster is paid a set fee by Spotify, which in the case of popular podcasts like The Joe Rogan Experience or Call Her Daddy could be worth over $50 million.
For the average podcaster who is trying to build their audience, the chances of Spotify paying these astronomical figures are pretty slim.
Nevertheless, there are many ways that podcasters of all levels can monetize their content, and use Spotify to help them do this.
Why Doesn’t Spotify Pay Podcasters Per Stream?
Many podcasters feel that it is unfair that streaming giants like Spotify or Apple Music don’t pay them in the same way that musicians get paid.
Musical artists can expect to earn somewhere between $0.0033 to $0.0054 for every stream that they receive. The final figure is dependent on the location fo the listener, and whether they are signed up to Spotify’s free version or the Premium service.
Podcasts, on the other hand, don’t generate any income for their creators by racking up streams. One of the likely reasons for this is that podcasts are available on Spotify’s free app, while a lot of music is only available when you sign up.
YouTube Music is also available for students or families. The student version is only $4.99 per month and gets you all of the same features as YouTube Music Premium. You simply have to prove that you’re studying by linking your account to your accredited college or university when you sign up to Premium.
Exclusivity deals are only available to podcasters who have built up a huge audience, which makes them a worthy investment for Spotify.
It’s rarer for musical artists to sign exclusivity deals with one streaming platform, but it has started to happen in recent years.
These deals could be viewed as good or bad because they can financially benefit the artist or podcaster, but they can also make it more difficult for the audience to enjoy the content.
Check out this YouTube video that shows how to get started with podcasting on Spotify.
How to Monetize a Podcast
The lack of financial royalties that podcasters receive from streaming platforms like Spotify means they need to use other methods to generate income from their content. Thankfully, there are many ways that this can be done.
In some cases, if a podcast amasses a large enough audience, it could actually be more lucrative than the pay-per-stream model that Spotify uses to pay its musical artists.
The most common way for podcasts to make money is by including advertisements in their content. Oftentimes, a company or brand will pay a podcaster a set fee to mention their product or service at some point during their podcast, so that they gain exposure to a wider audience.
The more successful a podcast gets, the more selective the creator can be over which advertisements they include in their content. At first, a podcaster may have to take whatever they can get to support their work financially, but if the audience grows, they will have more freedom to choose between different companies to partner with.
Another popular way for podcasters to make money is by allowing their listeners to donate to them, using platforms like GoFundMe or Patreon. The patrons will often be rewarded with exclusive content or early access to the podcasts as a thank you for their donation.
Spotify can be used along with other streaming or social media platforms to build an audience, which can then be turned into financial income using these methods. The key is to get a solid listener base which makes the podcast more lucrative to the creators.
How do you upload a podcast to Spotify?
To upload a podcast to Spotify, you need to first check that your content meets the platform’s requirements. Then, you simply set up a Spotify account, enter your podcast’s RSS feed link, and you’re ready to go.
Are Spotify podcasts free to listen to?
You don’t need a Spotify Premium account to listen to podcasts. If you have a free membership, you can listen to podcasts but you will have to put up with ads and you cannot download them for offline listening.
What do I need to record my first podcast?
To record a podcast, you need a microphone, computer or laptop, and recording software. You can either use a USB mic or use one with an audio interface.