Apple will fund podcasts so it can compete with Spotify, according to a report.
The company has been reaching out to media companies to discuss the option of buying the rights to new podcasts, which would make them exclusive to the Apple Podcasts platform.
Although the company is yet to outline a clear strategy for its new podcast ambitions, Apple is set to peruse “the kind of deals it didn’t make before,” a source told Bloomberg.
Apple is already spending millions of dollars on original content for its Apple TV+ project, so the decision to fund Podcasts as part of the mix is likely easier today than it was in the past.
At present, Apple does not monetize its Podcasts app but has expressed interest in the past in building a bank of exclusive content to encourage users to listen through Apple, rather than Spotify, Google Podcasts, Overcast, or Player FM.
And in the past, Apple Music’s exclusive content has performed well for the Cupertino firm.
According to Bloomberg, the news of Apple’s new interest in podcasts caused Spotify’s stock to fall by 2 percent in the aftermath, as any attempt from Apple to expand its podcasts offering could spell disaster to Spotify.
The streaming company has already fallen to second place in terms of paid music streaming subscribers in the United States, with Apple Music now on top.
One advantage Apple has is that the Podcasts app is installed on iOS by default, and with macOS Catalina, Podcasts will be a dedicated app as the company breaks up iTunes.
More than two years ago, Spotify was reportedly “coming after” Apple with a major push into podcasting, acquiring podcast companies, including Gimlet Media, Anchor, and Parcast to increase its original content, as well as introducing new initiatives for podcast makers.
Spotify is also funding new and original content as it aims to become the ‘Netflix of podcasts’.
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