Apple Looks to Bulldoze Into The Podcast Streaming Space (Long Time Coming)

Tim Apple is about to be collecting podcast talent like Tom Brady collecting short-fast-white kids in the early aughts… 

Apple invented podcasting, got comfortable, and then spent the last five years watching YouTube and Spotify turn video podcasts into a cash machine. Well now, Tim Apple is back… and he’s about to put all his Apple mouth breathers on some game… allegedly. 

(Source: Giphy) 

In short, Apple announced Monday it's finally bringing integrated video to Apple Podcasts this spring. Users will be able to switch between watching and listening from the same feed, download episodes offline, and use picture-in-picture mode. Which, spoiler… is the stuff Spotify and Youtube have had for years. 

(Source: CNBC) 

However, the move makes sense. About 37% of people over 12 watch video podcasts monthly, per Edison Research. No word on if the majority of that stat includes half the market watching Joe Rogan's bald head in 4K instead of just hearing about DMT and elk meat. That said, while Apple has been busy trying to make Siri look less bad, competitors have gone full-send. YouTube hit 1 billion monthly active podcast viewers last year. Spotify paid out over $100 million to podcasters in Q1 2024. Even Netflix showed up to the party, cutting a deal with Spotify and launching "The Pete Davidson Show" because apparently we needed that. Woof.

Meaning, the real play is that Apple’s rolling out HLS (HTTP Live Streaming… a.k.a, another way of ramming ads into video pods). Creators and hosting partners (Amazon's ART19, Acast, Triton's Omny Studio, SiriusXM) can now drop video ads… including host-read spots where your favorite podcaster shills for BetterHelp… right into episodes. Fun fact: Apple won't charge creators or hosts to distribute. But they will charge ad networks an impression-based fee for serving those ads. So it's free until you make money, then Apple takes a cut. Tale as old as time LOL. 

(Source: Giphy) 

Of course, Apple doesn't break out Podcasts revenue specifically, but its Services segment, which includes this stuff, did $30 billion last quarter. They also quietly bought Israeli AI startup Q.ai in January, which was reportedly working on audio-focused AI tools. That acquisition is either genius or a very expensive acqui-hire. We'll find out when Kanye West is invited on one of its podcasts. Tinfoil hats incoming… 

But alas, the moral of the story here is that Apple’s sorta-kinda playing catch-up in a space it literally created. The tech looks solid, and the business model is peak Apple (generous until you succeed then F’you, pay me). Obviously, we’ll see how this all plays out, but for now, enjoy the show. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Apple, Amazon, Netflix, and Spotify as mentioned in the article.