Shares of Spotify fell 6.56% on Wall Street on Friday after Apple announced that it is in talks to start a new podcasting subscription service.
According to Business Insider, Apple’s move toward podcasting follows a recent trend from the big tech giant, as the company continues to try to diversify its revenue streams.
Additionally, Apple’s iPod helped create the podcasting industry 20 years ago, and its podcasting app is pre-installed on all iOS devices, giving the company an edge over the competition.
For years, Apple podcasts have been a complement to the firm’s ecosystem rather than a great source of income; now that can change. Apple’s subscription service has a real chance of turning podcasters away from companies like Spotify.
Additionally, Spotify is already competing with startups like Luminary, which launched a podcasting subscription service in 2019, charging just $ 2.99 a month for its most basic offering.
Strong investment
Apple’s news comes on the heels of Spotify’s recent spending spree, which saw the company lose more than $ 800 million to acquire companies like Gimlet Media and The Ringer.
He also added a handful of high-profile shows, like “The Joe Rogan Experience,” to the podcasting platform.
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