No. The Podcast App downloads and plays the original RSS audio files exactly as the podcast creator uploaded them. There is no re-encoding, no compression, and no quality loss. You hear the audio exactly as intended by the producer.
Original Audio, No Re-Encoding
The Podcast App downloads and plays the original audio file from the podcast RSS feed without any re-encoding or compression. Whether the creator published in 320kbps MP3, AAC, or lossless formats, you hear it exactly as intended. Other apps transcode audio to save bandwidth, which degrades quality. We never do that.