Game Changer Or Game Over

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When a large profit-driven global organization enters an industry, there is hope that that company will be a steward of the industry, promoting, not only itself but also the welfare of the entire industry. Will it be an Enron or an Intel?

Spotify entered podcasting in response to razor thin profit margins in streaming music. It did so gradually. In 2015, Spotify added select non-music content, news updates, and audio shows (like BBC Minute and NPR) to its app for select mobile users. In 2018, Spotify opened its podcast platform to independent creators worldwide via the Spotify for Podcasters program. In 2019 and 2020, the company invested heavily in original audio studios and high-profile exclusive shows like The Joe Rogan Experience, alongside introducing video podcasts.

On the plus side high-profile original and exclusive shows from Spotify brought major blue-chip advertisers into podcast advertising for the first time. Programs like the Spotify Partner Program and developer tools provided new revenue and partnership opportunities for independent creators. Spotify has introduced modern features like real-time AI Q&A, polls, and comments to make passive listening more dynamic.

However, the tally sheet is decidedly mixed on Spotify’s impact on podcasting. According to Promarket, Spotify has harmed the podcast industry by shifting the medium away from open, decentralized systems toward a closed, proprietary platform while struggling with massive spam and reliability issues.

ForbesSpotify 20th Anniversary: What Impact Did Podcasts Have On The Company?

A congressional-adjacent investigation released in June 2026 by U.S. Senator Maggie Hassan, ranking member of the Joint Economic Committee, revealed that Spotify removed over 57,000 fake podcast episodes and 3,500 accounts promoting illegal online pharmacies and prescription drugs. According to the Pragmatic Engineer, independent creators have abandoned Spotify due to frequent errors in the creator portal and a lack of basic status updates or incident reviews. Many users and creators complain that Spotify’s playback features lag behind dedicated podcast apps, missing tools like smart speed, silence skipping, and advanced volume boosts.

Then, in early August, Spotify confirmed that it was testing out a feature that allows paid users to skip ads on podcasts. Spotify’s test of a new feature that allows users to skip ads more easily on podcasts initially sent shockwaves through the podcasting industry.

Skipping Through Ads

The Hollywood Reporter wrote that, “The surprise rollout of this button, even as a test measure, prompted a flurry of calls between advertisers and podcasters over the past week as each side sought to understand how and where this would apply. But once the dust settled, leading voices say the measure does not appear to be much different from the skipping functions that are already available on YouTube, as well as on other audio platforms.”

Are you a good witch or a bad witch?

Initially, the announcement of the Spotify ad-skipping feature was a head scratcher for many podcast consumers and those in the industry. Although no one doubted that this new feature would benefit Spotify, opinions radically differed about whether it was good for the entire industry or a death blow.

Tommy Vietor, a co-founder of the liberal podcast network Crooked Media, put it bluntly. “Very cool of @Spotify to try and destroy the podcast industry. What a great partner!” he wrote.

Podnews, the influential daily newsletter and weekly podcast, launched a detailed investigation into Spotify’s new feature and has uncovered some enlightening information.

Cridland wrote: “The Skip ahead feature appearing within Spotify’s own shows means that on the one hand, Spotify is selling ads, but is also marketing a skip feature to its own paying users, to enable those ads to not be heard. One podcast ad company told us that this could be considered fraudulent behavior: the ads have been charged-for and stitched into the audio, but the listener has been actively encouraged not to listen to them. The appearance of the feature alongside ads from Spotify’s competitors is equally problematic, since Spotify could hinder the effectiveness of advertising on podcasts owned by its competitors.”

Podnews also discovered that in Spotify’s user agreement, it reads: “Spotify shall be entitled to use the User Content in conjunction with all of the tiers, features and functionalities, websites and user interfaces, as well as all content and software applications associated with our services (collectively, the Spotify Platform) (which includes, but is not limited to, the right to transcribe User Content, e.g. for the purpose of optimizing search functionalities, improving personalization, simplifying content review and/or displaying on the Spotify Platform).”

In the August 16th edition of Podnews, editor James Crisland reported that some ads are appearing on Spotify – sold by Spotify themselves – which cannot be skipped at all, even by Premium Spotify users. Spotify’s response to that story was to comment:

“Spotify does not make podcast ads unskippable. A bug caused the 15-second skip to not be visible in the example, and it was fixed. The 15-second smart skip works for both Free and Premium users. Skip Ahead is a separate feature we are testing with a subset of Premium subscribers.”

This is the corporate equivalent of the dog ate my homework.

Do podcast consumers need or want to skip ads

Before Spotify pushed hard into podcasting in 2020, dedicated podcasting apps like PocketCasts already gave listeners customizable skip controls. PocketCasts allows users to set a forward jump length on its skip button, giving users granular control of how they avoid the ads included in their favorite podcasts.

Real-world listening data from hosting platforms reveal studies of mid-roll ad breaks show that ad retention rates often reach 90% or higher, meaning people skip far less in practice than they claim to in surveys. About 37% of listeners skip ads because the product or service is not relevant to them. Hearing the same ad too many times annoys 26% of listeners and makes them less interested. I cannot listen to another Progressive or Better Help ad.

Moreover, many people listen while doing chores, driving, or working. They may not want to touch their device to skip if their hands are busy. Keep in mind that Spotify Premium, or paid, users already listen to music ad-free on the platform.

The average ad load in podcasting is 8.75% of an episode’s total runtime, which translates to about 5.5 minutes of ads per hour. Ad load is the percentage of a podcast episode’s time given over to advertisements. Podcast ad loads remain much lighter than traditional broadcast radio, which typically features 12 to 20 minutes of commercials per hour (20% to 33% of airtime).

“While there are some abusers, loading ads into about 40% of their content,” says Gary Landon, New Jersey-based podcast engineer, ”Most podcasters are reticent to turn off their followers with a heavy dose of ads.”

One example of balancing ads versus cost are the streaming TV services. According to Deadline, on Hulu, accounts for the ad-supported plan make up roughly 58% of Hulu’s subscription sign-ups. Therefore. more than half of its subscribers are willing to put up with ads to save money every month.

In a clear signal that podcast consumers do find ads of value, Sounds Profitable research reveals that sports podcasts deliver superior advertising effectiveness, outperforming general podcast genres and social media platforms in trust, authenticity, and purchase satisfaction. 55% of sports listeners find ads feel natural and authentic, beating general podcasts (45%), Facebook (30%), and Snapchat (32%), and 70% of listeners say sports podcast ads reflect positively on the brand.

“Ads are not necessarily content poison,” says Gary Landon. “When they are relevant to the consumer, and not excessively long, ads can have value.”

ForbesSpotify Tests Ad-Skip Button That Could Upend Podcast Advertising

Do creators own their own podcasting product?

According to Semafor, last week, the audio streaming giant tweaked its streaming interface, adding a feature that allows some users to more effectively skip through the parts of a podcast no one wants — notably ads, as well as promotions and filler content — as long as they aren’t sold directly by Spotify.

Spotify cast the move as streamlining a feature that already exists, the 15-second skip button, which users in practice often use to bypass ads.

Ainsley Rossitto, Head Of Podcasts at Beehiiv, sums this issue up best, noting: “Spotify is reportedly testing a feature that lets Premium users skip entire podcast ad breaks with one tap. Whether or not it rolls out broadly, it’s a reminder that podcast creators don’t control the platforms where much of their audience listens. Those platforms can change the listener experience and the economics of a creator’s business at any time.

She continues: “Listening platforms are an essential channel for reaching audiences, but they should be one part of a creator’s business, not its entire foundation. Creators also need a direct relationship with their audience and reliable ways to bring people back, deepen engagement, and generate revenue beyond downloads. The point isn’t to move away from listening platforms. It’s to use them for reach while building the relationship and the business on channels you own.”

The losers in this Spotify skip-ahead feature are the consumers who find that their options for consuming podcasts will become more restricted. You do not need to be an anti-trust attorney to know that fewer buying options means higher prices.

Look at any industry where just a few companies control an entire industry. What incentives are there for these companies to innovate, and provide superb service. Can anyone tell the difference between AT&T, T-Mobile, and Verizon? Or any cable company? Or between Home Depot and Lowe’s? Why are eyeglasses so expensive? Could it be that one company, EssilorLuxottica, controls over 80% of the luxury and designer frame market segment through its extensive house brands, licensed designer portfolios, and massive retail network?

What Spotify continues to ignore is that these independent podcasters, essentially small-business entrepreneurs, are the single most important reason why people listen/watch podcasts. For every Joe Rogan, there are a thousand indie podcasters such as Dan L. Morris of Tracing The Path or Freddy Cruz of Your Mic covering topics ignored by shareholder-driven organizations that don’t understand the value of niche podcasting and the extreme loyalty it promotes among its customers.

Spotify is simply the conduit by which consumers stream or download music or podcasts. If another company came along with a more value-driven, feature-laden selling proposition, consumers would seek out that alternative.

Podcast consumers do not care what company hosts or sponsors the show. They may watch the ads, even act on an ad, or not, but the content is the ultimate decision-making mechanism.

When people lose a loved one, who do they go to? Not Spotify. It’s Nina Rodriguez from Grief And Light and Tara Accardo from Life With Grief. When they want to find out about how their favorite NFL or EPL team will do on the weekend, they don’t care about Spotify. They care about Ross Tucker and his football podcast or The Rest is Football for insights on the pitch from Gary Lineker and Micah Richards.

When a new movie like The Odyssey comes out, who will help them to decide whether to shell out $20 a ticket at an IMAX showing? It’s Filmspotting with Adam Kempenaar, who’s been reviewing new movies for over 20 years in podcasting.

What Spotify refuses to accept is that podcast listeners and viewers can do without them, but not without their favorite independent podcasters. Years ago, when my two sons were teens, we would drive as a family to their weekly travel soccer match. On the drive, we would listen to Car Talk from NPR with brothers, Ray and Tom Magliozzi. If we were early to the game, the four of us would sit in the minivan and laugh as we listened to the brothers, especially at the end credits when Ray and Tom read countless, pun-filled names, including Marge Innovera (Margin of error), Haywood Jabuzoff (Hey, would ya buzz off), and the famous law firm Dewey, Cheetham & Howe (“Do we cheat ’em? And how!”).

The content was memorable. The company we used to stream that content was irrelevant.

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