Apple takes on YouTube and Spotify with new video podcasting push

In a significant move to enhance its podcasting platform, Apple announced plans to launch an integrated video podcast experience within Apple Podcasts this spring. This initiative reflects the growing trend of video consumption in the podcasting realm, with around 37% of individuals aged 12 and older engaging with video podcasts each month, according to Edison Research. Eddy Cue, Apple's senior vice president of Services, emphasized the company's long-standing commitment to podcasting, stating, "Twenty years ago, Apple helped take podcasting mainstream by adding podcasts to iTunes, and more than a decade ago, we introduced the dedicated Apple Podcasts app." With this new feature, Apple aims to empower creators by giving them full control over their content while simplifying the listening and viewing process for audiences. Users of the Apple Podcasts app will soon enjoy the ability to effortlessly transition between watching and listening to their favorite shows from a single feed. The app will also support picture-in-picture mode and allow users to download video episodes for offline enjoyment. Although video support has existed through RSS since 2005, previous video feeds were distinct from their audio counterparts. The upcoming update will introduce HLS, or HTTP Live Streaming, a protocol that facilitates adaptive video playback and enhances user controls within the app. Additionally, the new HLS format will enable dynamic video ad insertion, allowing creators working with select hosting providers and ad networks to integrate video advertisements into their episodes. While Apple will not impose fees on creators or hosting providers for content distribution, participating ad networks will incur impression-based charges for delivering these dynamic video ads. Initial podcast hosting partners supporting this new HLS video feature include Acast, Amazon-owned ART19, Triton's Omny Studio, and SiriusXM. This announcement arrives amid a competitive landscape, as platforms like YouTube and Spotify also invest heavily in video podcast content. YouTube reported over 1 billion monthly active viewers of podcast content, while Spotify has expanded its video podcast offerings significantly, spending over $100 million to support podcasters in early last year. Netflix has also ventured into video podcasting, partnering with Spotify to introduce video podcasts and developing original programming, such as "The Pete Davidson Show," which premiered in January. While Apple does not disclose specific revenue figures for Apple Podcasts, its Services segment—which encompasses digital content and subscription services—reported $30 billion in revenue last quarter. Furthermore, in January, Apple acquired Israeli AI startup Q.ai, although details regarding the acquisition remain undisclosed. Q.ai's website suggests that the startup was focused on developing audio-related AI tools.