Spotify is making a major push into video by announcing a new payment structure for video creators.
Starting January 2, 2025, creators on the platform will be compensated based on the engagement their videos generate from paid subscribers. In addition, Spotify will eliminate automated ad breaks in videos for paid subscribers, making video content more seamless and enjoyable for users. These changes are set to roll out in the US, UK, Australia, and Canada.
With this move, Spotify is setting itself up as a direct competitor to YouTube, which already shares substantial ad revenue with creators, particularly in the podcast space. Spotify’s CEO Daniel Ek expressed confidence in Spotify’s ability to deliver a superior experience for creators, stating, “We can provide an experience for your audience that is superior to any other platform,” at a recent creator event in Los Angeles.
Since introducing video podcasts widely in 2022, Spotify has seen an explosion in engagement, with video podcast creators more than doubling each year. The platform now hosts over 300,000 video podcasts, up from 250,000 earlier this year, with video consumption hours outpacing those of audio-only content, according to company spokesperson Grey Munford.
To support creators further, Spotify is launching a hub called Spotify for Creators. This portal will provide detailed payout information, eligibility insights for video payments, advanced analytics, and the option to upload short, vertical video clips. However, while Spotify remains tight-lipped on the exact payout calculations, co-president Gustav Söderström assured creators that the payments would be “competitive with what they’re doing today,” adding that it wouldn’t make sense for creators to switch otherwise.
