Spotify Makes It Easier for Creators To Earn, Reveals $10 Billion Podcast Spend

Spotify is expanding its monetisation program for creators and introducing new tools for video podcasters, as it aims to better compete with YouTube and Netflix in the booming market. The Swedish streaming company said on Wednesday it has invested more than $10 billion in the podcast industry over the past five years to drive creator earnings, scale engagement and build infrastructure. It is now lowering the thresholds to join its monetisation program, a year after the initiative was launched.

"Since launching the program, monthly video podcast consumption on Spotify has nearly doubled," Spotify's global head of podcast, Roman Wasenmuller, said in a media briefing. “The average Spotify podcast user streams twice as many video shows per month as they did before the launch.”

The move comes at a time when platforms are jostling for video podcast creators in a bid to tap rising demand for such content as well as the higher engagement it offers.

Spotify creators can now qualify for the program with 1,000 engaged audience members, 2,000 hours consumed over the past 30 days and three published episodes, compared with the prior requirement of 2,000 listeners, 10,000 hours consumed and 12 published episodes.

The company said creators in the program can earn from ads on free tiers and other platforms, but video creators get an additional revenue stream, as they are paid directly by Spotify when premium subscribers watch their videos ad-free.

Spotify will also roll out new sponsorship management tools in April and let creators easily publish and monetise video podcasts directly from third-party hosting platforms, including Acast, Audioboom and Libsyn.

It also unveiled Spotify Sycamore Studios, which will be the new home for The Ringer podcasts and available to select creators. Alongside its facilities in London and New York, the move will help creators avoid the costs of renting facilities, Spotify's head of content partnerships, Jordan Newman, told Reuters.

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