Spotify head Daniel Ek during his company’s ‘Now Playing’ event, which delivered, among other things, the announcement of a new monetization program for video podcasts. Photo Credit: Phillip Faraone
Seven weeks after announcing its Partner Program, Spotify has officially launched the video-podcast-focused monetization system.
This framework just recently went live in the U.S., Canada, the U.K., and Australia. One component of a wider diversification effort from Spotify, the Partner Program debut has coincided with the platform’s aggressive video expansion.
Though the latter extends to TV shows and more, video editions of podcasts are evidently the chief focus here. Among other things, the Partner Program is cutting podcasters in on Premium revenue when paid users watch their programming.
In turn, those paid users will receive ad-free viewing experiences – and, at least in theory, help make the audio giant Spotify an even bigger destination for video content. As explored in detail by DMN Pro, Spotify is no longer the top podcast platform.
That’s because YouTube, capitalizing on an apparent preference for video episodes, managed to cement its status as the podcasting market leader in the U.S., per 2024 consumption data.
It remains to be seen whether that will change in 2025. But at least as described by Spotify, the Partner Program (encompassing as well audio commercials for Spotify’s ad-supported tier and on different podcast platforms) is finding many takers at present.
To be sure, north of “65% of eligible shows and networks have already enrolled,” per Spotify, which is further pushing short-form video as a means of promoting shows. The company also announced this short-form support in November, though DMN identified the feature some seven months before that.
Thus far, these up to 90-second videos have proven “33% more effective than previews at converting browsers into engaged listeners,” according to Spotify, which is reportedly building a video-focused ad exchange.
Moreover, Spotify, now releasing AI podcasts to boot, is continuing to tout superfan-focused podcast subscriptions as another revenue opportunity for creators.
Bringing the focus back to the music space (which is, after all, meant to be Spotify’s bread and butter), it’ll be worth closely monitoring the compensation particulars associated with the Partner Program.
Stated bluntly, it hasn’t even been a year since Spotify aggressively doubled down on the so-called “bundling loophole” in the States.
By reclassifying its main subscription tiers as audiobook and music bundles – a maneuver the MLC is contesting in court – the service unlocked massive royalty savings at the expense of songwriters and publishers.
Then, on the recorded side, there’s the 1,000-annual-stream minimum that uploads must hit before beginning to accrue royalties. Corralled by the major labels and possibly reaching platforms besides Spotify soon, that system is inherently detrimental to indie and unsigned talent, DMN Pro broke down at length.