Spotify began testing video podcasts in 2020, and YouTubers were a major part of that effort. The company even paid $100 million for “The Joe Rogan Experience” and signed up popular creators like Zane Hijazi and Heath Hussar. Fast forward to today, and Spotify now has 250,000 video shows on its platform. But it seems that’s only the start. Spotify wants more video content, and it’s turning back to YouTubers to get it.
Offering up to seven digits
According to sources reported by Bloomberg, Spotify is offering huge sums of money, up to seven figures, to creators if they upload their videos on both Spotify and YouTube. The deals aren’t exclusive, meaning creators can still keep their content on YouTube. In return for uploading videos, Spotify is offering lump sum payments and marketing support.
Spotify’s approach doesn’t involve rights acquisitions or production deals. This is likely because the company reorganized its podcast production last year, cutting 200 jobs and merging its acquisitions Parcast and Gimlet under Spotify Studios. A spokesperson for Spotify said, “The popularity of video is surging on Spotify, but our making deals with creators is not new.”
Aiming for video ad revenue
Spotify’s push for video content ties into its broader strategy to compete in the digital advertising space. In May, Ann Piper, Spotify’s Head of North American Ad Sales, told Adweek, “Spotify is ready to play in the digital advertising pool and compete for more than just audio budgets.” Recently, Spotify has been heavily promoting video ads, telling brands that their video ads will only run when users are actively engaging with the app.
By going after more creators, Spotify hopes to attract advertisers who typically spend on platforms like YouTube and TikTok.
