Spotify is making moves in digital content, offering seven-figure sums to YouTubers to upload videos on its platform. 

As sources familiar with the matter have told Bloomberg, the music streaming giant, which now hosts 250,000 shows with video content, is not seeking exclusivity or rights acquisition in these deals.

The company’s strategy involves providing lump sum payments and marketing support to creators who agree to make their content available on Spotify alongside YouTube. The financial offers vary significantly based on the talent involved, though specific figures remain undisclosed.

This initiative marks Spotify’s latest effort to expand its video presence since it began testing video podcasts in 2020. 

The platform has previously invested heavily in this area, including a $100 million deal for “The Joe Rogan Experience” and partnerships with established creators like Zane Hijazi and Heath Hussar.

Spotify’s push into video aligns with its broader advertising ambitions. 

Ann Piper, Spotify’s Head of North American Ad Sales, told Adweek at the company’s first NewFronts appearance in May that it was “ready to play in the digital advertising pool and compete for more than audio budgets.”

The company is positioning itself to attract advertisers who typically allocate budgets to platforms like YouTube, TikTok, or traditional TV. 

In a recent pitch deck, Spotify highlighted its audience engagement, stating that “video ads are only served to your audience when we know they’re engaged with the app and looking at the screen.”

While Spotify declined Bloomberg’s request for comment on specific deals, a spokesperson noted that the company has been working with podcasters and creators on video-inclusive shows for several years.

Spotify vs. YouTube

Spotify’s latest move is a significant step for the streaming platform. It directly competes with YouTube in hosting standalone video content, moving beyond its initial focus on video podcasts.

In July, Spotify unveiled a “Comments” feature for podcasts and launched a mobile app for podcast creators to boost engagement and provide management tools. The company reported that over 9 million unique Spotify listeners interacted with existing Q&A and poll functions in 2023, up 80% year-over-year.

In late August, reports emerged that Meta and Spotify were developing a feature allowing continuous music sharing on Instagram. A screenshot revealed an option for users to “continuously share” their Spotify music on Instagram Notes.

On the other hand, YouTube Music recently incorporated user feedback to enhance its podcast experience. The enhancements arrived as YouTube Music absorbed users from the defunct Google Podcasts platform.