Spotify announced on Wednesday that it will start paying podcast hosts who make popular videos on its streaming platform, as the company looks to take on YouTube’s dominance in the video podcast space. Although creators can already monetize their podcasts on the platform, they are now being incentivized to publish a video component alongside their podcasts.
By paying podcast hosts based on how much engagement their shows receive, Spotify is borrowing a page out of YouTube’s book. The Google-owned platform pays creators billions of dollars a year in shared ad revenue.
The company will also start letting premium subscribers watch video podcasts without ads. Spotify says this change will allow listeners to access videos without interruptions, which means that people may be more inclined to watch more content on the platform.
Although Spotify is one of main services for listening to podcasts, YouTube still has a massive lead in video overall. By giving listeners an uninterrupted viewing experience, Spotify is likely hoping that people will choose to watch video podcasts on its own platform, rather than YouTube.
Spotify says more than 250 million users have watched a video podcast on its platform ever since it launched the format back in 2022. The company also says that nearly two-thirds of podcast listeners say they prefer podcasts with a video component.
In addition, the number of creators publishing videos monthly on Spotify has grown by more than 50% year-over-year. Spotify also revealed that there are now more than 300,000 video podcast shows on its platform.
“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,” Spotify CEO Daniel Ek said in a blog post. “And by giving you, the creators, another path to monetization beyond ads, we’re freeing you up to spend more time doing what you love: creating.”
The changes announced on Wednesday will go into effect on January 2nd, 2025 in the U.S., U.K., Australia, and Canada.
