Updated: Sep 13
Spotify is reportedly limiting ad payouts for white noise podcasters, a type of ambient noise podcast that involves looping relaxing sounds like rain or static, in a bid to boost the company’s annual profits.
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Spotify is Reportedly Limiting Ad Payouts for White Noise Podcasters Spotify, the world’s leading audio streaming platform, is reportedly limiting ad payouts for white noise podcasters. According to a report by Bloomberg, Spotify is pulling select advertising privileges for white noise podcasts in a bid to boost the company’s annual profits. Starting October 1st, white noise podcasters will no longer be permitted to participate in Spotify’s Ambassador Ads program.
White noise podcasts are a type of ambient noise podcast that involves looping relaxing sounds like rain or static. They are often used as background noise to help people sleep or concentrate. According to a source cited by Bloomberg, the money spent on advertising white noise podcasts “wasn’t well spent” because they often serve as background noise instead of engaging active listeners .
However, white noise podcasters can still make money on the platform via paid subscribers, listener support, and automated ads. The Ambassador Ads program pays creators based on impressions. According to a Bloomberg report last month, some podcasters can make up to $18,000 a month through the program.
Spotify has outlined changes to its Ambassador Ads program in an email to creators. The company has increased the audience threshold required for conventional podcasters to participate in the program from 100 to 1,000 unique Spotify listeners over the past 60 days. The company is also looking to invite more podcast hosts to its Automated Ads program, and participants can expect a 50 percent split of the revenue.
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According to leaked documents from January referenced in the Bloomberg report, white noise and ambient podcasts were unintentionally boosted as part of Spotify’s attempt to promote talk-based content over music. They accounted for around 3 million hours of daily listening on the platform. Spotify calculated that it could increase its annual gross profit by $38 million if it removed white noise podcasts from its talk feed and redirected listeners towards other kinds of content. However, it ultimately never followed through with this plan.
The move by Spotify has been met with mixed reactions from users and creators alike. Some have criticized the decision as being unfair and discriminatory against white noise podcasters. Others have defended Spotify’s decision as being necessary for the company’s financial health.
In conclusion, Spotify is reportedly limiting ad payouts for white noise podcasters starting October 1st. While this move may be unpopular among some users and creators, it is ultimately necessary for Spotify’s financial health. White noise podcasters can still make money on the platform via paid subscribers, listener support, and automated ads.