Apple is escalating its competition in the digital media arena with a major upgrade to Apple Podcasts, introducing a fully integrated video podcast experience. The move reflects a structural shift in how audiences consume long-form content: according to Edison Research, 37% of people over age 12 now watch video podcasts monthly. As the boundaries between streaming, social video and podcasting blur, Apple is positioning itself to capture both creator loyalty and advertising dollars in an increasingly visual ecosystem.

The initiative aligns Apple more closely with rivals that have aggressively leaned into video formats. YouTube claims more than 1 billion monthly active viewers of podcast content, while Spotify has paid over $100 million to podcasters in a single quarter, signaling the financial weight behind video expansion. Even Netflix has entered the space with dedicated video podcast programming.

Seamless Video Integration and Creator Monetization

The upcoming update will allow users within Apple Podcasts to switch fluidly between watching and listening from the same feed. Features such as picture-in-picture mode and offline video downloads aim to reduce friction and deepen engagement, particularly among mobile-first users.

Technically, the upgrade introduces support for HLS (HTTP Live Streaming), Apple’s proprietary adaptive streaming protocol. Beyond smoother playback, HLS enables dynamic video ad insertion, a development with significant monetization implications. Participating ad networks will be able to insert video ads—including host-read segments—directly into episodes. Apple will not charge creators or hosting providers to distribute content but will apply impression-based fees to ad networks delivering dynamic video inventory.

This approach mirrors broader industry trends toward performance-based advertising models. By integrating dynamic ad capabilities directly into its infrastructure, Apple is strengthening its ecosystem while preserving creator flexibility—a strategy that balances monetization with platform control.

Strategic Timing Amid Intensifying Competition

Apple’s renewed push comes as competitors deepen investments in video podcasting. Spotify has expanded video tools and monetization options, while Netflix has partnered with Spotify to bring select video podcasts onto its streaming platform. These moves reflect a convergence between traditional streaming and creator-driven content formats.

For Apple, the stakes extend beyond podcasts alone. Its Services segment generated $30 billion in revenue in its most recent quarter, underscoring the importance of recurring digital income streams. While Apple does not break out podcast-specific revenue, expanding video capabilities may help sustain user engagement within its ecosystem, potentially supporting subscriptions, advertising and cross-platform retention.

The recent acquisition of Israeli AI startup Q.ai, reportedly focused on audio-related artificial intelligence tools, also suggests Apple is preparing to enhance content discovery, personalization and possibly production workflows. AI-driven optimization could further differentiate its offering in a crowded market.

Redefining Podcasting’s Competitive Landscape

Apple helped popularize podcasting two decades ago through iTunes. Today, it is responding to a fundamental transformation in audience behavior: podcasting is no longer purely audio. By embedding video directly into its core platform rather than siloing formats, Apple is signaling that multimedia integration is essential to long-term relevance.

The broader question is whether Apple can leverage its ecosystem advantage—hardware, software and services integration—to capture share from platforms that were quicker to embrace video-first strategies. Success will depend not only on technology but on creator adoption and advertising performance.

As video continues to dominate engagement metrics across digital media, Apple’s move represents both a defensive maneuver and an offensive bid to reclaim leadership in a category it once defined.