Auddia Announces First Beta Program Partner for Subscription Pay-Per-Play Podcasting
Auddia has announced its first beta program partner for subscription Pay-Per-Play podcasting, Ultimate Motorcycling Magazine’s podcast, Motos And Friends. The beta program, launched on July 1st, 2024, utilizes Auddia’s Seamless Play technology to deliver ad-reduced podcasts. Auddia compensates podcast owners per play, offering roughly double the average ad-supported rate. CEO Michael Lawless expressed excitement about the partnership, emphasizing its potential to create a stronger economic environment for podcasters. Future expansions include launching faidr on CarPlay and Android Auto, and adding more podcast partners to the beta program.
- Auddia secured its first beta program partner, Ultimate Motorcycling Magazine.
- The beta program started on July 1st, 2024, and runs for 90 days.
- Podcasts in the program will be delivered ad-reduced, leveraging AI and NLP technologies.
- Auddia compensates podcast owners at roughly double the average ad-supported rate.
- Plans to launch faidr on CarPlay and Android Auto in the coming weeks.
- None.
Insights
The announcement of Auddia's first beta program partner for its subscription Pay-Per-Play podcasting is a notable development in the audio content industry. This initiative signals a potential shift in the monetization strategies for podcasts by directly compensating creators per play, which can be a more appealing economic model compared to traditional ad-supported methods.
Market Dynamics:
From a market perspective, this move aligns with the growing trend of subscription-based services across digital media. By providing a platform that reduces ads and offers better compensation, Auddia could attract more podcasters seeking to enhance their revenue streams while improving user experience.
Potential Impact:
If successful, this model could gain traction and prompt other players in the podcasting space to reconsider their monetization strategies. For investors, it’s important to monitor how well the beta program performs and whether it can scale effectively with more partners.
Risks:
However, there are risks involved. The success largely depends on user adoption and whether listeners are willing to switch to a subscription model for an ad-reduced experience. Additionally, the scalability and sustainability of the Pay-Per-Play model will be tested over time.
From a financial perspective, Auddia's partnership with Ultimate Motorcycling Magazine represents an innovative approach to revenue generation for both the company and podcast creators. The promise of compensating podcasters at a rate double the average ad-supported podcast rate is significant.
Revenue Model:
For Auddia, this beta program could potentially enhance its top-line revenue growth if it succeeds in attracting a substantial user base willing to pay for an ad-reduced experience. This could differentiate Auddia from competitors relying heavily on traditional ad revenue models.
Short-Term and Long-Term Implications:
In the short term, the impact on earnings will be minimal as the program is in its beta phase. Long-term success, however, could lead to a more predictable and higher margin revenue stream, which is favorable for the company’s financial health.
Challenges:
Yet, the financial viability of this model hinges on effective user acquisition and retention strategies. The higher payout to podcasters must be balanced against subscription revenues to avoid margin compression.
Ultimate Motorcycling Magazine’s Podcast Motos And Friends Will be the First Partner for faidr’s Subscription Beta
faidr’s Beta Program Pays Podcast Owners per Listen While Delivering an Ad-reduced Experience for Users
BOULDER, CO, July 09, 2024 (GLOBE NEWSWIRE) -- Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) (“Auddia” or the “Company”), a proprietary AI platform for audio identification and classification and related technologies, reinventing how consumers engage with AM/FM radio, podcasts, and other audio content, today announced it has secured the first partner for its beta podcast subscription program with Ultimate Motorcycling Magazine.
"We at the Motos And Friends understand the interruptive downside to advertising in podcasting, and we've always been thoughtful about integrating relevant sponsorship content into our episodes," said Arthur Coldwells, the founder and host of Motos And Friends. "Auddia's approach represents an attractive economic model for us, one that does not require interrupting the content the listener is enjoying, and we're excited to see how our audience responds."
In March of 2024, Auddia provided details of its Pay-Per-Play podcast beta, the goals of which were to tap into higher margins and enable greater efficiencies beyond the current economics of podcasting. Since that update, the Company has been in talks with multiple podcast owners and networks interested in joining its beta program.
For the beta program, which runs for 90 days and kicked off on July 1st, 2024, all new Motos And Friends episodes on the faidr app will be delivered through Auddia’s Seamless Play technology, leveraging the Company’s AI and NLP technologies of segment-identification and ad-avoidance. For each play or download, Auddia will compensate Ultimate Motorcycling per play on the faidr app. The rate is roughly double what the average ad-supported podcast makes per download.
“We’re thrilled to launch this partnership with Motos And Friends podcast,” said Michael Lawless, CEO of Auddia. “From the beginning of developing the feature, our goal was to foster a stronger economic environment for podcasters. The creators behind Ultimate Motorcycling Magazine immediately understood what we were trying to achieve, and we’re excited to see how their listeners engage with our platform.”
In addition to launching faidr in both CarPlay and Android Auto in the coming weeks, the Company is in the process of bringing several other podcast partners into the beta Pay-Per-Play program and will announce further progress milestones accordingly.
About Auddia Inc.
Auddia, through its proprietary AI platform for audio identification and classification and related technologies, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia’s flagship audio superapp, called faidr, brings two industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station and podcasts with interactive digital feeds that support deeper stories and open untapped revenue streams to podcasters. faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. Both differentiated offerings address large and rapidly growing audiences with strong purchase intent. For more information, visit: www.auddia.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
www.pcgadvisory.com
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