Apple Delays Launch Of Podcast Subscription Service Until June

Tech giant Apple Inc's (NASDAQ: AAPL) podcasts subscription was slated to start this month with iOS 14.6

What Happened:  Apple has delayed the launch of its new podcast subscription service to June, Reuters reports. 

Podcast creators are facing issues with delays in their shows appearing on the platform, according to Reuters.

In an email received by 9to5Mac, Apple said it would launch Apple Podcasts Subscriptions and channels in June to "ensure the best experience for creators and listeners."

Apple has acknowledged several issues with Apple Podcasts Connect, a portal for submitting shows and monitoring their performance. 

"Over the last few weeks, some creators have experienced delays in the availability of their content and access to Apple Podcasts Connect. We've addressed these disruptions and encourage creators experiencing any issues to contact us," Apple said.   

In the email, Apple said it has hundreds of new subscriptions and channels submitted from creators across the globe every day since its announcement in April. 

Apple has already confirmed a partnership with Tenderfoot TV, Pushkin Industries, Radiotopia from PRX, QCode, NPR, the Los Angeles Times, the Athletic, and Sony Group Corp (NYSE: SONY), Gizmodo reports.

Unveiled in April, Apple Podcasts subscriptions are designed for podcast creators to charge for their shows. Apple keeps a 30% commission of it in the first year of the subscription and drops commissions to 15%.

According to the podcast subscription model, listeners need to pay a monthly fee to subscribe to their favorite creators for the opportunity to unlock unique perks.

Why It Matters: According to Loup Ventures' Gene Munster, the podcast marketplace could add just over $600 million in revenue by the fiscal year 2026, out of the estimated total revenues of $460 billion. 

Given the service has an 80% operating margin, it would account for about 0.5% of the operating income.

Though it will be small for Apple, the podcast marketplace is another offering that furthers user engagement with Apple services, increasing the stickiness of Apple's ecosystem, Munster said.

Photo by Laurenz Heymann on Unsplash