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Towards the monetization of the podcast format

The French are now fans of the podcast format! And yet, in terms of monetization, the subject is still in its infancy. Very few features are offered to content creators to enable them to make their activity profitable. So what developments can we expect in the coming months? Passion Media tells you everything.

02 Nov 2021 - 3 min read

Hey you! 

Already a must in the United States, the podcast format is finally finding its audience in France! A larger offer, a longer listening time, a number of listeners in strong growth… After a few stutters, the market is changing. And a key subject deserves to be addressed today: the monetization of this type of content. Yes, the era of free content is going to change. Content creators will need to make their model more viable. Passion Media tells you more!

The success of the podcast format in France

If its arrival in France was rather soft, the podcast is now unavoidable! According to a Harris Media survey, there are no less than 100 million podcasts listened to each month in France. We also spend more than 2 hours a day listening to audio content… Another study by the Paris Podcast Festival shows that more than 33% of French people listen to this type of content, against 29% in 2020. And today, the vast majority of this content is still free. So, how to monetize this subject? How to allow content creators to make a living from this format? 

Spotify is thinking about monetizing podcasts

Claire Hazan (director of Spotify’s studios in France and Benelux) recently revealed in an interview that she is currently working on the implementation by the end of 2021 or beginning of 2022 of features that will allow monetizing the podcast format on Spotify. Concretely, this should be done in two ways: the launch of a paid subscription (in addition to the subscription to the platform) and the implementation of ads. 

A paid subscription model tested in the United States

These two features have already been tested in the United States (a pioneer country on the format) for a few months. Spotify has also committed to not taking any commission on these revenues until the end of 2023. After this date, the platform will charge a commission of around 5%. So, why make the choice of a whole year without commission? It’s a way for the brand to show its willingness to let content creators freely deploy on the subject, test their model, and develop their revenues. It is also a way to encourage the creation of this type of content in order to accelerate the development of the sector.

Paid subscription already active on Apple Podcast

Spotify is not a forerunner in this area. Apple Podcast already launched the subscription feature last June, and it’s available worldwide. The only difference? The platform already charges a commission of up to 30% (and should drop to 15% after one year of subscription). As for the content creators, they are free to set their own rates and to offer the exclusive content they want to their paying subscribers (bonus episodes, previews, commercial-free programs, etc.). 

Listeners, not yet ready to subscribe to a paid service?

These features seem to be in line with what we can find on other social networks and platforms. However, one doubt remains. According to the Paris Podcast Festival study, listeners are not yet ready to pay for access to the podcast format. 63% opt for the free model with advertising, 37% say they are ready to opt for the subscription format without advertising. So is it too early? Does the market need to mature first? Does the podcast format first need to become part of French people’s daily lives in order to be monetized?

Donations: an alternative for content creators?

There is another way to monetize podcasts: tip systems. And the popularity of platforms like Patreon or Tipee seems to be going in this direction. The idea? Listeners spontaneously give the content creator of their choice a monthly income of a few euros to contribute to his work and access exclusive content (live, meetings, previews, bonus episodes, etc. …). This model has already proven its worth with the community of Youtubers. Everything suggests that it could be replicated for Podcasts. 

The Ministry of Culture proposes aids for creators

Proof that the Podcast has a growing impact, the Ministry of Culture has tackled the subject. It announced last September the implementation of a budget of more than 500 000€ to help content creators finance the creation of their podcasts (writing, recording, etc…). How to apply for these grants? By responding to a call for projects available directly here. In order to benefit a maximum of creators, the aid is capped at a package ranging from 3000 to 5000 € per creator. A relatively low amount but which has the merit to exist and to help the creators to launch themselves!