Apple Podcasts - 'ad free', but who pays?

Apple Podcasts is promoting that shows in its “Series Essentials” are ad-free this month - but publishers aren’t being compensated for the loss of revenue.

One publisher confirmed to Podnews that, in order to be promoted in the app as part of the feature, it was required by Apple to offer the show ad-free. “After the promotional month, we could turn on ads again,” the publisher told us.

Apple Podcasts did not confirm to Podnews that it is offering publishers any payment for offering their shows ad-free for this feature.

Podnews has heard from some in the industry who are unhappy about the loss of revenue when taking part in a promotion like this. Some publishers sell paid subscriptions through Apple Podcasts, and while this promotion may lead to increased take-up of those paid subscriptions, this is seen as a gamble for publishers. Apple, however, gains to benefit both ways: unaffected by any lack of ad revenue, Apple also takes a 30% commission on any paid subscription through the service.

This is in stark contrast to Amazon Music, which offers ad-free podcasts to Prime members and Amazon Music Unlimited subscribers. In order to do this, Amazon purchases ad inventory across a wide range of shows. “Amazon is buying out all ad slots on these shows on their app, so think of it as a regular ad buy,” Acast says to publishers, while the public announcement underlined that “Ad-free listening to Acast podcasts on Amazon Music will result in revenue for Acast podcasters.”

No promotion outside the app

An ad for Amazon Music in London’s Waterloo Station in 2022

Amazon Music, too, has promoted shows across European cities and regularly promotes podcasts on its Times Square billboard.

Yet, unlike TV ads promoting the Apple app store in 2015, the 30% commission for Apple Podcasts premium subscriptions has not appeared to lead to any ad campaigns for shows by Apple Podcasts.

Specifically, this “Series Essentials” feature this October was mentioned in The Hollywood Reporter, in Podnews, and some Apple tech publications, but we can’t find any coverage about the feature in any public-facing title.

“Working for nothing”

In 2015, Taylor Swift criticised Apple publicly for not paying artists during Apple Music free trials:

I’m not sure you know that Apple Music will not be paying writers, producers, or artists for those three months. I find it to be shocking, disappointing, and completely unlike this historically progressive and generous company … Three months is a long time to go unpaid, and it is unfair to ask anyone to work for nothing.

After Swift’s blog post, it took less than 24 hours for Apple to amend their policies and pay creators for their work.

There have been significant financial constraints on podcasting in the last twelve months. Hundreds of layoffs have been made across public radio. There have also been layoffs at SiriusXM’s Earwolf; closures and 110 layoffs at Amazon’s Wondery; and the closure of Pineapple Street Studios, and other signs of financial pressure.

The “Series Essentials” feature include three shows from US public radio companies, which have been significantly affected by funding cuts over the past six months. Even those companies - while some are forced into making mass layoffs - have been asked to ensure that their work is ad-free to take part in the promotion.

Above: “Ad-free in October” is the claim: but publishers must foot the bill

Afraid to speak up

Apple Podcasts remains the #1 podcast app for consumption in the US, and therefore wields considerable power - causing many publishers to be eager not to upset the company. As Taylor Swift said back in 2015, many “are afraid to speak up publicly because we admire and respect Apple so much.”

We have seen this first-hand. Of the publishers we contacted, some responded with an official “no-comment”; while most simply ignored our request for comment. Nobody wants to risk going without an Apple Podcasts promotion for their new show, after all.

Apple has a market cap of $5.8 trillion, and made $190bn in profit this year - yet doesn’t recompense creators for offering an “ad-free” version of shows within Apple Podcasts, to help promote the platform.

We’re told by Apple that publishers are excited to be part of the campaign, since it offers additional visibility of their shows. We suspect they’d be more excited if they were also getting paid for their work.