Around two weeks ago it became known that the music streaming service Spotify was losing a lot of money through so-called white noise podcasts. These are podcasts that only stream white noise, which is intended to help you relax. Now action is being taken.
Monetization option stopped
Bloomberg previously cited internal documents showing that the company could increase its annual gross profit by a whopping $38 million by cutting the white noise podcasts. Something similar will now happen, even if Spotify had ruled it out according to the older Bloomberg report.
Spotify will no longer allow the creators of White Noise to participate in its Ambassador Ads program. The program is a way to monetize podcasts by introducing listeners to Spotify for Podcasters, the company’s podcasting platform.
As a first step, the company will reduce its expenses for these podcasts. There is also hope that this type of podcast will become unattractive for creators, which means Spotify also wants to reduce its data transfer costs.
White noise plays monotonous sounds such as rain, sea waves, etc. on a loop over a period of time to help you relax, relieve stress, meditate, or fall asleep.
White noise podcasters have been making up to $18,000 per month, largely through advertising directly from Spotify. Currently, they will (still) be able to make money through other means of monetization, such as paid subscribers, listener support, or automatically played advertising.
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