Spotify simplifies earning for creators, unveils $10 billion investment in podcasts

Spotify Enhances Monetization and Tools for Video Podcasters

On January 7, Spotify announced significant updates to its creator monetization program and introduced new features for video podcasters, aiming to strengthen its position against competitors like YouTube and Netflix in the rapidly growing digital content market.

The Swedish audio streaming giant revealed that it has invested over $10 billion in the podcast sector over the last five years, focusing on boosting creator income, increasing user engagement, and developing robust infrastructure.

Spotify is now making it easier for creators to access its monetization program by lowering the entry requirements, just a year after the program’s initial rollout.

“Since we launched this initiative, the number of monthly video podcast streams on Spotify has almost doubled,” shared Roman Wasenmuller, Spotify’s global head of podcasts, during a press event.

He also noted that users are now watching twice as many video podcasts each month compared to before the program began.

This update comes as various platforms compete to attract video podcast creators, seeking to capitalize on the rising popularity and increased engagement of this content format.

Updated Monetization Criteria

• Creators now need 1,000 engaged audience members (previously 2,000)
• 2,000 hours of content consumed in the past month (down from 10,000)
• Three published episodes (reduced from twelve)

Those accepted into the program can earn revenue from ads on Spotify’s free tier and other platforms. Additionally, video creators benefit from a unique income stream, as Spotify pays them directly when premium subscribers view their videos without ads.

New Features and Studio Launch

Starting in April, Spotify will introduce enhanced sponsorship management tools and allow creators to seamlessly publish and monetize video podcasts from third-party hosting services such as Acast, Audioboom, and Libsyn.

The company also announced the launch of Spotify Sycamore Studios, which will serve as the new base for The Ringer podcasts and will be accessible to select creators. With facilities in London and New York as well, this initiative is designed to help creators avoid the expense of renting studio space, according to Jordan Newman, Spotify’s head of content partnerships.

Reporting by Jaspreet Singh in Bengaluru; Edited by Devika Syamnath