Spotify wants to go head-to-head with YouTube. It plans to start paying creators who post popular videos based on the engagement they get from paid subscribers. The streaming service also intends to eliminate automated ad breaks for paid subscribers to encourage them to watch more videos. These changes will take effect starting January 2, 2025, in Canada, the US, the UK, and Australia. This incentive will pit them directly against YouTube, which is also leaning heavily on video podcasts and paying creators in shared ad revenues.
Spotify creators can access their payout details in a hub called Spotify for Creators. The platform can also show if they're eligible for the payments, display more detailed analytics, and offer the option to upload short, vertical videos. It's unclear how much Spotify plans to pay the video content creators on its platform. However, Spotify spokesperson Grey Munford said creators will see their breakdowns in the hub. And Spotify co-president Gustav Söderström told The Verge that the rate will be competitive and consumption-based because "it makes no sense for them" otherwise.