The pros and cons
Podcasting has transformed the way we consume media, offering listeners worldwide an extensive array of content that can be accessed at their leisure. The medium has become so popular that according to Edison Research, as of 2021, more than 80 million Americans listen to podcasts each week, a number that has grown consistently over the past decade. With this popularity, a number of podcasters have adopted the subscription model to monetize their content, resulting in significant debate over the implications and efficacy of this approach.
And software provided by apps like Podup is part of the solution.
To begin with the advantages, the subscription model provides a steady, predictable revenue stream. This is of great importance to podcasters who are seeking financial stability. With subscriptions, they can estimate the number of recurring income they will receive, allowing them to budget and plan for future projects accordingly. For instance, the podcast “Chapo Trap House”, a political commentary show, has successfully utilized Patreon to gain over 35,000 subscribers contributing around $162,000 per month. This substantial income empowers them to consistently produce high-quality content without worrying about fluctuating ad revenues.
In addition to financial stability, the subscription model also enables podcasters to build a loyal audience. When listeners pay for content, they are more likely to engage, listen regularly, and feel invested in the podcast’s success. For example, Sam Harris’ podcast, “Making Sense,” operates on a partially freemium subscription model. While many episodes are available for free, a subscription provides additional perks like ad-free episodes, AMA access, and exclusive content. By offering value beyond the regular episodes, Harris has built a community of dedicated listeners who contribute to the podcast’s ongoing viability.
However, the adoption of subscription fees is not without its challenges. One significant downside is the potential reduction in audience size. The internet has acclimatized users to free content, and introducing a fee can deter potential listeners, limiting the podcast’s reach and growth. A smaller audience can also diminish the attractiveness of the podcast to advertisers, who often require large listener bases to warrant their investment.
There’s also the issue of competition. As the podcasting landscape grows more saturated, listeners have a vast selection of free content to choose from. Charging for content may lead potential listeners to opt for free alternatives that offer similar content. For example, while a podcast like “The Daily” from The New York Times offers a quality product, many listeners may prefer to access free news podcasts instead of paying for a subscription.
The subscription model also places a higher demand on the quality and consistency of content. If listeners are paying for a podcast, they expect regular, high-quality content. Maintaining this standard can increase the pressure on podcasters, potentially stifling creativity and leading to burnout.
On a practical note
On a practical note, implementing a subscription model can be complex. It necessitates the use of a third-party platform like Patreon or the creation of an in-house solution, both of which have financial costs and require additional work.
Finally, it is worth mentioning that successful examples of subscription-based podcasts are often exceptions rather than the rule. Most high-earning podcasts have significant initial traction or are backed by celebrities or well-known personalities. For smaller, independent podcasts, achieving similar success with a subscription model can be much more challenging.
In conclusion, charging subscription fees for streaming podcasts can offer significant advantages, including financial stability and the potential to build a more loyal and engaged audience. However, these benefits come with significant challenges, including potentially limiting audience growth, facing fierce competition, and meeting heightened listener expectations. As with many business decisions, whether or not to charge a subscription fee for a podcast should be carefully considered in light of these factors.
