Spotify to share revenue with video podcasters starting next year
Spotify has announced plans to begin paying podcast creators based on the engagement their videos generate from paid subscribers. The company's new "Partner Program" will allow creators to earn beyond ad revenue. This new strategy will be rolled out in several countries including the US, UK, Australia, and Canada, from January 2, 2025.
New strategy challenges YouTube's creator compensation model
Spotify's move to directly pay video creators according to engagement is similar to YouTube's strategy of sharing ad revenue with its creators. The move was announced by CEO Daniel Ek at a recent Spotify creator event in Los Angeles. Ek stressed that Spotify wants to provide an experience for audiences that is better than other platforms.
Rapid growth in video podcast consumption
Since the introduction of video podcasts in 2022, Spotify has seen a massive spike in the consumption of the format. The number of video creators on the platform has more than doubled every year. Today, there are over 300,000 video podcasts on Spotify. According to company spokesperson Grey Munford, "video consumption hours have grown faster than audio-only consumption hours year-over-year."
Spotify for Creators: A hub for payout details and eligibility
Spotify is working on a hub, 'Spotify for Creators,' where creators can find their payout details and check if they are eligible for video payments. The platform will also offer advanced analytics and the option to upload short, vertical video clips. The precise calculation method for video payouts is still not known from the company.
Partner program and enhanced video features
Spotify says that nearly two-thirds of podcast listeners prefer video podcasts. The new "Partner Program" encourages podcasters to add a video component to their shows. To cater to listeners' preference, Spotify is also planning to introduce more video features like chapters, comments, pinch-to-zoom, thumbnail scrubbing, and personalized video recommendations throughout the app.
