Spotify is testing a button that lets Premium users skip podcast ads. The industry is panicking.

Spotify is testing a feature that could reshape the podcast industry’s economics. A “skip ahead” button, appearing for some Premium subscribers when the app is in the foreground, lets users bypass podcast ads, intros, and filler in a single tap. The catch: ads sold directly by Spotify cannot be skipped. Only ads sold by the podcast networks themselves can be. The distinction creates a two-tier system where Spotify’s own advertising inventory is protected and everyone else’s is devalued.

The reaction was immediate. Tommy Vietor, cofounder of liberal podcast network Crooked Media, called it an attempt to “destroy the podcast industry.” Podnews called it a “significant threat” to ad-funded shows. Several major audio networks contacted Spotify after the change was announced, seeking information about the impact on their monetisation. One podcast ad company told Podnews the practice could be considered fraudulent, since ads are charged for and stitched into the audio while listeners are simultaneously given a way to avoid hearing them.

Spotify’s argument is that the button keeps people listening longer. In private conversations with publishers last week, the company cited data showing the skip function increased overall podcast listening time. Spotify also gave itself room to retreat, saying the feature is in early testing and it is still gathering feedback from podcast companies, users, and advertisers. The button only appears when the app is open and full-screen, not on the lock screen or during background listening, and only some paid subscribers can see it.

The deeper tension is structural. Spotify’s 777 million monthly users include a majority on the free tier who hear both Spotify’s ads and the podcast network’s ads. Premium subscribers already pay for an ad-free music experience and have expressed frustration at hearing podcast ads inside the same app. Spotify’s leaders believe some podcast companies load shows with excessive ads, according to a person familiar with the company’s thinking. OpenAI shifted ChatGPT’s ad model to cost-per-click in April after its own pricing collapsed, and ChatGPT introduced ads in February as every platform rethinks how advertising works inside AI and media products. The skip button is Spotify’s version of the same renegotiation: sell through our system or accept that your ads will be easier to skip. Whether this is a product improvement or a power grab depends on which side of the ad sale you sit on.