Spotify is introducing a new monetization program for video podcast creators, expanding revenue opportunities beyond traditional advertising models. 

The Spotify Partner Program, launching in January 2025, will offer creators audience-driven payouts from premium video revenue alongside existing advertising income streams.

The program initially rolls out in the United States, United Kingdom, Canada, and Australia, targeting the platform’s growing video podcast segment. According to company data, more than 250 million users have watched video podcasts on Spotify, with nearly two-thirds of podcast listeners expressing a preference for video content.

“By delivering a best-in-class video offering uninterrupted by ad breaks, combined with Spotify’s flexibility and ubiquity, we can provide an experience for your audience that is superior to any platform,” said Daniel Ek, Spotify founder and CEO, in a news release.

The platform reports significant growth in video content engagement, with the number of creators publishing videos monthly increasing by more than 50% year over year. Currently, more than 300,000 video podcast shows are available on Spotify, including “The Joe Rogan Experience,” “Call Her Daddy,” and “What Now? with Trevor Noah.”

Gustav Söderström, Spotify co-president and CPO, stated that “half of the new podcasts that build sustained audiences include video,” highlighting the format’s growing importance in creator success.

The announcement comes as Spotify expands its reach to more than 640 million users and 250 million subscribers globally. Responding to increased video consumption trends, the company has also activated music videos in 85 additional markets.

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.”

Starting in January, the update includes uninterrupted video content for Premium subscribers in participating markets. The platform introduces new features such as chapters, comments, pinch-to-zoom, and thumbnail scrubbing to enhance the viewing experience.

To support creators’ transition to video, Spotify is launching Spotify for Creators, a streamlined hub for multiformat content management. The platform also introduces video clips to help creators promote podcast episodes and improve discoverability.

Premium subscribers will maintain the ability to switch between foreground video viewing and background audio listening, preserving the platform’s flexibility for different use cases.

Spotify Takes on YouTube

In September, reports emerged that Spotify was offering seven-figure sums to YouTubers to upload videos on its platform amid their battle for podcast dominance. 

The music streaming giant reportedly wasn’t seeking exclusivity or rights acquisition in those deals. Instead, its strategy involved providing lump sum payments and marketing support to creators who agreed to make their content available on Spotify alongside YouTube.

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.

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.