Apple's Podcast Gamble: Why They're Finally Chasing YouTube After 20 Years

The $100 Million Question Apple Finally Answered

Why did Apple wait 20 years to add video to podcasts? While Spotify paid creators over $100 million in just one quarter last year, and YouTube boasts 1 billion monthly podcast viewers, Apple sat on the sidelines of the video podcast boom.

Until now. This spring, Apple Podcasts will finally integrate video, allowing seamless switching between audio and video from the same feed. The move puts Apple in direct competition with platforms that have been eating its lunch in the creator economy.

The Numbers Don't Lie

37% of people over 12 watch video podcasts monthly, according to Edison Research. That's not a niche anymore—it's mainstream. Yet Apple's podcast app has remained stubbornly audio-first while competitors built billion-dollar video businesses.

The new features sound familiar: picture-in-picture mode, offline downloads, and dynamic ad insertion. What's different is Apple's approach to monetization. Unlike charging creators or hosting providers, Apple will take impression-based fees from ad networks delivering video ads through its HLS (HTTP Live Streaming) protocol.

Late to the Party, But Not Empty-Handed

Apple's delay might have been strategic. While competitors rushed to capture market share, Apple quietly developed HLS technology and built relationships with major hosting partners including Acast, ART19, Omny Studio, and SiriusXM.

"Twenty years ago, Apple helped take podcasting mainstream," said Eddy Cue, Apple's senior VP of Services. The company clearly sees this as reclaiming lost territory rather than entering new ground.

Apple's Services segment generated $30 billion in revenue last quarter, though podcast-specific numbers remain undisclosed. The addition of video advertising could provide a significant boost to this already lucrative division.

The Creator Dilemma

For podcast creators, Apple's entry creates both opportunity and complexity. The promise of reaching Apple's massive user base is tempting, but creators now face yet another platform to manage. The seamless audio-video switching sounds great in theory, but will require creators to produce content suitable for both formats.

Meanwhile, the acquisition of AI startup Q.ai in January hints at Apple's broader ambitions for audio-focused AI tools. Could this be the beginning of AI-powered podcast creation and curation?

The Netflix Factor

Perhaps most telling is Netflix's recent entry into video podcasts, including original programming like "The Pete Davidson Show." When the world's largest streaming platform sees podcasts as strategic, it signals a fundamental shift in how we consume long-form content.

This isn't just about podcasts anymore—it's about the future of entertainment distribution.