Spotify announced Tuesday that it will launch a paid subscription service for podcasters, allowing hosts to monetize their shows and letting the company compete with Apple's premium podcast library.
Variety reported that Spotify will allow creators to host their podcasts on the platform with subscription fees for two years without charging them anything to host the shows; beginning in 2023, the platform will take a 5 percent cut of all subscriber revenue.
Premium podcasts will be available through the platform through three payment tiers, according to Variety, at $2.99, $4.99 or $7.99 per month.
The Hill has reached out to Spotify for more information about the expansion into paid podcasts.
“We really wanted to come out and show creators that we are offering the best terms ... and two years [without taking a cut of revenues] is a great way to do that,” Michael Mignano, Spotify’s head of podcaster services and tools, told Variety. “There’s no exclusivity. We’re not locking you into terms.”
The announcement comes a week after Apple announced that it was launching its own "global marketplace" for premium, subscription-only podcasts.
"Starting in May, listeners in more than 170 countries and regions can sign up for premium subscriptions that include a variety of benefits curated by creators, such as ad-free listening, access to additional content, and early or exclusive access to new series," reads a news release on Apple's site.
Alongside its new podcast marketplace, Apple also plans to launch "channels," which are groups of shows curated by creators for their audiences.
“Today, Apple Podcasts is the best place for listeners to discover and enjoy millions of great shows, and we are proud to lead the next chapter of podcasting with Apple Podcasts Subscriptions. We’re excited to introduce this powerful new platform to creators around the world, and we can’t wait to hear what they make with it," said Apple Senior Vice President Eddie Cue in a statement.