Starting January 2, 2025, Spotify: the first is that the company will start paying creators based on engagement on their videosfrom paying users. The second change has to do with automated ad breaks in videos, which will be disabled for paid subscribers. Both of these changes go into effect for users in the US, UK, Australia, and Canada.
Spotify's decision to pay video creators based on engagement increases competition with YouTube, which has also turned to podcasts and already pays billions to creators. "We can offer your audience an experience that is superior to any other platform," said Spotify CEO Daniel Ek.
See also: Spotify's latest UI update creates new problem
Spotify made video podcasts widely available in 2022, and since then, viewing of this content has skyrocketed, with the number of video creators on the platform more than doubling every year. There are now over 300,000 video podcasts on Spotify, up from 250,000 at the end of June. Also, “ watch hours video have grown much faster than listening hours year-over-year .”
See also: Spotify: New auto-updating playlist for offline listening
Creators will be able to access their payment details in a hub called Spotify for Creators. There, they will also be able to find information about whether they are eligible for video and see more advanced analytics.
However, the company did not provide details on how much money video creators will receive. The company does not explain how it calculates payments. Creators themselves will be able to see the analytics on Spotify for Creators.
“It’s consumption-based and it’s competitive,” Gustav Söderström The Verge, when asked if the company’s payments would be similar to those of other platforms. “Otherwise, it doesn’t make sense for them.”
See also: Spotify: AI Playlist is available in US, Canada, Ireland
Spotify’s new strategy aims to incentivize creators to produce high-quality content that attracts and retains subscribers. By aligning payments with engagement levels, the company hopes to foster a more dynamic and rewarding ecosystem for content creation. Additionally, this model encourages creators to focus on building a loyal audience, as subscribers can determine the creator’s revenue. This benefits creators financially, but it also gives them more control over their success and growth in the industry.
Source: www.theverge.com
