Spotify has long been more than just a music streaming provider. The platform now also has radio plays, audio books and recently even music videos in its repertoire. Moving images are set to play an even greater role at Spotify in the future: in the form of podcast videos. Managing director Daniel Ek and his team spoke about this in detail at the Now Playing event.
So it’s no secret that Spotify would like to steal market share from YouTube. Google’s platform is currently a reliable source of income for video makers. Spotify would now like to attract creative people with a new payout model. The idea behind it: Viewers with a premium subscription should be able to enjoy video podcasts without commercial interruptions. One way to achieve this is to allow video creators to share in the advertising revenue through free subscriptions. On the other hand, they would like to introduce options through which users can directly support their favorite creators. Such options are also available on YouTube or Twitch.
Spotify wants to offer creators more income options. | Image: Spotify
Spotify says it is responding to the needs of its subscribers. Two thirds of podcast listeners would say that they prefer podcasts with video material to pure audio playback. Spotify therefore already offers over 300,000 video podcasts. The whole thing can be monetized via the fresh, so-called Partner Program. However, in the first step, only video podcast makers whose audiences are in the USA, Great Britain, Canada and Australia will benefit from this – from January 2025.
Spotify for Creators: The new contact point for creatives
However, CEO Daniel Ek and his team keep talking about huge change. That’s why “Spotify for Podcasters” is also transforming into “Spotify for Creators”. This is a behind-the-scenes move intended to reflect the shift in focus toward video content. In fact, this approach is becoming more and more like YouTube. However, the Google platform offers significantly more social functions that the audience can use to react to content. If video podcasts become more and more successful, this will probably be the next construction site for the music streaming provider.
Spotify has a rocky road ahead of it when it comes to recruiting video makers who have already built up a solid community on YouTube. Even if you would certainly prefer to bind the creative people exclusively, you also admit that they should initially see the music streaming service as an additional channel. It’s not about YouTube or Spotify, but about using both platforms in parallel.
New listeners should also be able to access video podcasts by, for example: B. promote the content using individual video thumbnails and clips in the Spotify app. This is also a bit reminiscent of the YouTube shorts. Many new functions such as video chapters, a comment function, pinch-to-zoom and more will follow in the future.
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Question 1: What do you see as the main advantages of Spotify’s move towards incorporating more video content into its platform?
Guest 1: I believe that this move towards incorporating more video content is a strategic decision by Spotify to expand its offerings and attract a wider audience. By offering both music and video content, Spotify is able to provide a one-stop-shop for entertainment, which could potentially reduce the need for users to switch between different platforms for their music and video needs. This also allows Spotify to compete directly with YouTube, which is currently dominating the video content market. Additionally, the introduction of podcast videos could appeal to a new demographic of users who prefer visual content over audio-only formats.
Guest 2: I agree with Guest 1 that this move has the potential to attract a wider audience and increase user engagement. However, I also think that Spotify’s approach to monetizing video content is innovative and could potentially provide additional revenue streams for both Spotify and content creators. By offering premium subscribers ad-free video experiences, Spotify is incentivizing users to upgrade their accounts while also giving content creators an opportunity to earn more money through revenue sharing. Furthermore, the introduction of features like video chapters, a comment section, and the ability to pinch-to-zoom could enhance the user experience and make video podcasts more engaging for listeners.
Question 2: How do you think this move will affect the existing relationship between Spotify and video content creators, especially those who already have a strong following on platforms like YouTube?
Guest 1: It could be challenging for Spotify to attract video creators who have already built up a large following on YouTube. These creators may be hesitant to shift their content to another platform, especially if it means losing out on the social features that YouTube offers. However, Spotify’s promise of additional revenue streams and a potentially larger audience could be enticing. Ultimately, it will depend on how well Spotify is able to market its video capabilities and build a community among video content creators.
Guest 2: It’s true that Spotify faces an uphill battle when it comes to luring away established video creators from YouTube. Nevertheless, Sp
