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Ray Chao explains how Vox Media is building up a podcast subscription business
Two years after Vox Media entered the podcast subscription business through the Cafe Studios acquisition, the publisher has “tens of thousands of active paying podcast subscribers,” said Vox Media svp and gm of audio and digital video Ray Chao on the latest Digiday Podcast. “We acquired Cafe a little over two years ago, and we’ve learned a ton from just operating that business over the last two-plus years,” Chao said. Vox Media’s broader subscription business continues to grow as it adds more podcast subscription options. In June, the publisher introduced a subscription program for narrative crime podcast “Criminal Plus.” And it followed with a subscription-based tier for “Where Should We Begin? With Esther Perel.” Vox Media is prioritizing acquiring subscribers directly but has been exploring third-party subscriber acquisition sources. For example, “Where Should We Begin?” sells subscriptions through Apple Podcasts at $4.99 per month or $41.99 per year. Chao said that third-party subscription sellers like Apple provide a means of capturing “lower propensity subscribers,” i.e. people who may be unwilling to go through the full direct sign-up funnel. Looking ahead, Chao has an eye on how Vox Media may differentiate the subscriptions it offers directly from those offered through third parties as a way to incentivize subscribers to sign up directly, such as by offering access to email newsletters and events, but still have a compelling pitch to those lower propensity subscribers, such as by providing access to exclusive audio content that is also available to direct subscribers. Vox Media has already implemented the dual-subscription option with Cafe Studios’ podcasts. “An early learning for us is how do we work with both [subscriber acquisition] paths and maximize our consumer revenue business and engage more of our subscribers,” Chao said.
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