After an initial delay, Apple, Inc. AAPL met its revised June 15 deadline for the launch of its Podcasts Subscriptions.
What Happened: Apple Podcasts Subscriptions, the global marketplace for premium podcast subscriptions, is now available worldwide, Apple said in a statement.
The service allows listeners in more than 170 countries to purchase subscriptions for individual shows and groups of shows through channels. The subscription vests additional benefits such as ad-free listening and early access directly on Apple Podcasts.
"Thousands of Apple Podcasts Subscriptions and channels from the world's best audio creators, including the Los Angeles Times, Luminary, NPR, Pushkin Industries, and QCODE, are available today, with more launching every week," Apple said.
Apple Podcasts Subscriptions are available for subscribers on Apple devices, running iOS 14.6, iPadOS 14.6, and macOS 11.4 or later. Customers also have the leeway to play subscription content on Apple Watch with watchOS 7.5 or later and with HomePod, HomePod mini, and CarPlay.
Creators are allowed to monetize the podcasts, although 30% of the subscription fee goes to Apple.
Listeners can manage their subscriptions and switch from monthly to annual billing if offered.
Each Apple Podcasts Subscription can be shared among six family members through Family Sharing.
Apple also said Podcasts Subscriptions can be purchased and gifted using Apple Gift Card.
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Why It's Important: Apple first announced this feature in late April and fixed the launch timeframe for May. The deadline was not met with reports attributing the delay to the company's desire to provide the "best experience" of creators and users.
Close on heels of Apple's unveiling of the service, music streaming service Spotify Technology SA SPOT also announced a paid podcast service.
Spotify has opted to not charge platform fees for creators until 2023, when it will begin to introduce a competitive 5 percent fee for access to this feature.
Loup Ventures managing partner and famed Apple analyst Gene Munster said in a note he sees podcasts subscriptions as a "hobby for Apple and a career for Spotify."
By 2026, the analyst sees Apple Podcasts Subscriptions contributing $600 million to Apple's top line but will likely account for merely 0.5% of the operating income.
The podcast marketplace, though will be small for Apple, is another offering that furthers user engagement with Apple services, increasing the stickiness of Apple's ecosystem, Munster said.
At last check, Apple shares were edging down 0.47% to $129.88.
Related Link: Apple in Talks with Tesla Supplier CATL for Battery Supply Deal: Report
(Photo: Apple)
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