Long considered the leader in music streaming, Spotify is now having a big impact on the video industry. The company recently announced a number of new features to help creators and promote video content at its “Now Playing” event in Los Angeles.
A growing video ecosystem
Spotify has been expanding its video offerings for years, and the numbers show it’s working. Spotify now has over 170 million subscribers who have streamed video, a huge increase from just 10 million in 2019.
With over 300,000 shows currently available and a 60% increase in monthly views over the previous year, video podcasts are also experiencing tremendous growth. The average amount of time users spend on the network has increased from 30 hours in 2020 to about 40 hours per month.
Introducing the Spotify Partner Program
The new Spotify Partner Program, which will debut in January 2025, is the main focus of Spotify’s announcement. This initiative audio and video gives creators a variety of revenue streams.
The “Premium Video Revenue” system, which pays based on views from Spotify Premium customers, or ads placed in their episodes are two ways that creators can make money. “All a creator has to do is tell us where they want the ads, and we’ll handle the rest,” Spotify shared in a blog post.
This strategy is similar to YouTube’s monetization model and can draw in creators searching for other sources of income. Matt Huang, a Spotify monetization expert, highlighted the program’s flexibility, saying, “It helps creators experiment with different types of content while maximizing earnings.”
A profitable future
Spotify’s focus on video seems to be paying off. The company expects an operational profit of $1.5 billion in 2024, with 252 million Premium users and $499 million in Q3 profits. CEO Daniel Ek emphasized the importance of this shift, saying, “We’re bullish on the growth of our video ecosystem.”
While audio remains Spotify’s core, its push into video positions it as a major player in the multi-format media world. Whether it can rival YouTube remains to be seen, but for creators, Spotify is becoming a serious contender.