Spotify Tests New Skip Button Threatening Podcast Advertising Revenue

Spotify is testing a new skip button in its app that allows some users to more easily bypass parts of podcasts they do not want to hear, such as ads, promotions, and other content. However, ads sold directly by Spotify cannot be skipped, while those sold by podcast creators or audio companies can be skipped. This distinction has raised concerns in the podcast industry, which relies heavily on direct advertising revenue.

Industry voices have criticized the move, with Podnews calling it a "significant threat" to ad-supported shows, and Tommy Vietor, co-founder of Crooked Media, accusing Spotify of trying to "destroy the podcast industry." Several major audio networks have reportedly contacted Spotify to express worries about potential revenue losses and requested more information. Spotify has responded by saying the feature could keep listeners engaged longer by letting them skip uninteresting segments rather than stopping listening altogether.

Currently, the skip button is in a limited test phase, available only to some Premium subscribers when the app is in the foreground. Spotify stated that it regularly experiments with features to improve user experience and increase time spent on podcasts. The new button effectively creates two tiers of advertising: Spotify-sold ads remain unskippable, while creator-sold ads become easier to skip. This is particularly sensitive for Premium users who pay for ad-free music but still encounter embedded podcast ads, whereas free users hear both Spotify and creator ads.

The podcast industry, already transitioning from audio to video and platforms like YouTube, sees this small button as a potentially major problem. Some industry leaders are considering moving listeners to competing platforms like Apple Podcasts if the change becomes permanent and may collectively pressure Spotify over the issue.