Exclusive: Spotify’s new ‘skip’ button could end the podcast business as we know it
The potential disruption of the podcast ad economy comes at an uncertain moment for an industry in the middle of a retool from a format that largely resembled radio to one that much more closely resembles television.The decline of linear TV has pushed audiences toward video podcasting on platforms like YouTube and now Netflix, which has replaced traditional television for many younger audiences, as I wrote about following my interview last week with SubwayTakes host Kareem Rahma. Algorithmic video feeds have accelerated this transition, as more and more podcast companies see clipping for TikTok and the like as the primary discovery method for podcasts — and, in some cases, whole brands.The advertising industry has willingly accelerated this transition, enjoying a familiar return to the days of the 30-second advertising spot.The podcast ad business has sought to reassure marketers that people will hear their podcast commercials. Some users skip ads, but most public and private measures suggest that the vast majority of listeners catch at least some of them.One podcast executive with several podcasts in Spotify’s top 50 mused that if Spotify goes through with the changes, their company could attempt to shift audio listeners to Apple, the once-dominant podcast platform that has allowed competitors like Spotify and YouTube to take its market share. Another podcast exec mused that if the skip button is effective enough, podcast companies may have to figure out a way to pressure the platform together.Few media companies have been able to meaningfully push tech platforms around, but Spotify has shown some willingness in recent months to bend. Last year, the platform announced that it was rolling out play counts for podcasts. Just days later, the platform clarified that it would only be grouping play counts into broad buckets over a certain amount, a concession that brought relief to some podcasts that didn’t want the everyday listener (or advertiser) looking under the hood at individual episode streams.Still, it’s easy to see why Spotify is eager to introduce the feature. I was one of the users who got the new button in their iPhone app last week. It appears when the app is open and full-screen (not on the lock screen or during background listening). It’s incredibly effective, and eliminates the need to listen to even a small fragment of an ad for ZipRecruiter.
