Spotify’s latest move has everyone talking. They have rebranded Spotify for Podcasters to Spotify for Creators and rolled out an ad-free video option for Premium users. 

But for podcasters, this shift raises some big questions. If you upload a video podcast to Spotify, you lose key metrics like downloads and dynamic ad tracking. It’s a big departure from the traditional podcast model. 

Meanwhile, YouTube is still expanding podcasting while keeping RSS feeds intact, making it easier to reach new listeners. 

Is Spotify aiming to attract video creators at the expense of podcasters? And how will creators decide if these trade-offs are worth it? Let’s find out.

Spotify's new focus: premium subscriptions and video creators

Spotify is positioning itself as the go-to platform for premium video podcasting, emphasizing subscription revenue over ad-based models. 

By hosting a star-studded event at its Los Angeles campus, featuring creators like David Rosenthal of Acquired, Colin and Samir, and even a closing concert by Halsey, the company sent a clear message: it is serious about attracting YouTubers to boost subscriptions.

Spotify Founder Daniel Ek made the announcement on November 13, 2024 from Spotify’s LA campus

Spotify lavished attendees with top-tier perks, but the presentations highlighted a fundamental shift. Starting January, Premium subscribers in key markets like the US and UK will enjoy ad-free video podcasts.

Spotify’s strategy is becoming increasingly obvious. They are going all in on Premium subscriptions and video content. By inviting video creators to join their platform without requiring an audio version of their content, Spotify is widening its appeal beyond traditional podcasters. 

Spotify for Creators makes it easy to bring video into your podcasting experience. You can upload and manage your videos across mobile, desktop, and TV, allowing your fans to switch between listening and watching effortlessly. Features like pinch to zoom and thumbnail scrubbing helps your fans browse your content with ease. 

If you decide to go all in with video, you can join the Spotify Partner Program to start earning revenue through ad sharing or ad free episodes for Spotify Premium users in select markets. It’s a great opportunity to grow your show, engage your audience, and make money.

However, this shift creates a dilemma for creators. Those who rely heavily on dynamic ads and detailed analytics from their hosting platforms may find it challenging to adapt, especially since Spotify’s setup doesn’t allow static image videos like YouTube.

How does Spotify compare to YouTube?

Spotify’s move feels bold but also different from YouTube’s strategy. 

A couple of years ago, YouTube introduced a dedicated podcast section, letting creators offer both audio and video content seamlessly. This dual-option approach has been a growth engine for podcasts, with nearly half of audio-first listeners discovering new shows there. 

By contrast, Spotify’s approach—pulling content away from traditional RSS feeds—might limit discovery opportunities. It makes you wonder: is this restrictive, or is Spotify simply creating a unique ecosystem for its users?

Spotify’s subscription-based revenue-sharing model differs from its music pool structure. 

Payouts for video podcasts will depend on individual audience consumption, bypassing the competition-heavy pool system. This offers a fairer deal for creators, especially smaller ones who might have struggled against behemoths like The Joe Rogan Experience. 

However, specifics remain unclear, leaving creators and networks to speculate on how this new system will compare to YouTube’s well-established monetization through AdSense.

Why target YouTubers?

Spotify sees YouTubers as key to its growth. Traditional podcasters rely on dynamic ads for monetization, but Spotify’s model shifts focus to host-read ads baked into content. 

The new approach may feel restrictive for podcast networks accustomed to selling flexible ad slots, but it could appeal to YouTubers who lack a robust podcasting framework. 

For creators, Spotify’s ad-free environment offers an untapped revenue stream, potentially attracting fans who prefer Spotify’s streamlined experience over YouTube’s ad-heavy interface.

What you need to know about Spotify's new video guidelines

When uploading a video podcast to Spotify, there are a few key details creators need to know. 

First, Spotify ensures that video podcasts play seamlessly without affecting your existing RSS feed or audio podcasts. This means every play of your episode is now considered a video, but with that comes the loss of certain metrics, like IAB Certified Downloads, ad tracking, and log-level data from your hosting platform. 

Second, while Spotify is still happy to call RSS URLs for audio podcasts, video podcasts cannot simply be static images of your cover art. Third, for Spotify Premium subscribers, video podcasts will be ad-free, though ads will still be shown to free users. However, dynamic ads served by Spotify won't be available to video podcasts, and creators can’t insert their own. 

Lastly, while creators may qualify for the Spotify Partner Program, it’s unclear if the Premium Video Revenue from Spotify’s audience will be more lucrative than current dynamic ad models. It's a significant shift, but one that raises many questions for creators about the potential trade-offs between video consumption, ad revenue, and the overall platform shift.

A peek into Spotify's new creator tools

Spotify is rolling out a bunch of features that aim to make life easier for creators while helping them grow and monetize their content. Here’s what makes them exciting and how they could transform your creative process:

The Spotify Partner Program

This new monetization initiative is available in select countries like the US., UK, and Australia. Creators who qualify earn revenue from Spotify-placed ads in their episodes. Plus, video podcasters can get paid for Premium streams, where earnings are based on fan engagement rather than ad revenue. 

More detailed analytics

Spotify’s analytics features give creators a detailed view of their audience and content performance. You can see follower growth over time, track streams, consumption hours, and comments on your latest episodes, and visualize how audiences discover and engage with your content. Plus, you can view and respond to comments directly to strengthen fan connections. 

Improved video discovery

Short-form video clips are now a key feature, and here is what makes them interesting: creators can upload clips up to 90 seconds long directly to Spotify, where audiences are already listening. These clips show up across the platform, from the Home feed to episode pages, giving potential fans a quick preview of what they can expect. 

The focus is not on creating another social media experience but on helping audiences quickly connect with full episodes. Plus, creators can now customize video thumbnails to make their content stand out across devices. How would you use these tools to expand your reach?

Upgraded video experience

New features like thumbnail scrubbing, pinch-to-zoom, and video chapters make content more interactive. Add a comments section where creators can interact with viewers, and you’ve got a recipe for building stronger fan communities. 

Multiformat flexibility

No matter if your podcast is audio-only, video-focused, or a mix of both, Spotify has made it easier than ever to host, distribute, and monetize your content. With 600 million users ready to discover your work, Spotify’s updates are designed to support creators and their audiences alike. And really, who wouldn’t want to turn their passion into profit on a platform this big?

New ways to monetize

One of the biggest draws for creators is monetization, and Spotify is offering a revenue-sharing model for video creators in its Partner Program. 

Whenever a Spotify-monetized ad plays in your episode, either on or off the platform, you get a share of that revenue. Just let Spotify know where you'd like the ads to appear, and they will handle the rest. 

Premium subscribers won’t see ads on these videos, but how does this stack up against YouTube’s ad revenue and Premium payouts? 

Given Spotify’s stricter qualifications for joining the program, smaller creators might struggle to benefit. This raises the question: will the promise of revenue sharing and exposure convince creators to switch, or will it push them toward platforms with more earning potential?

While Spotify’s focus on ad-free content aims to drive subscriptions, it presents challenges. Dynamic ads, critical to podcasting’s growth, are being sidelined. Networks now face tough decisions: embrace Spotify’s model or risk losing ad-driven revenue streams. 

Traditional podcast executives have expressed concerns, particularly as Spotify’s moves disrupt the tried-and-true CPM-based valuation model. For shows already offering ad-free subscriptions, the competition with Spotify intensifies further.

What does this mean for podcasters?

Spotify’s decision stems partly from listener fatigue with increasing ad loads. Gustav Söderström, Spotify’s co-president, noted how podcast ad lengths jumped from 8% to 11% of total episode duration in just three months. 

He argued that this trend risks alienating audiences. By offering ad-free video podcasts to Premium subscribers, Spotify seeks to differentiate itself in an increasingly crowded market. But will this strategy resonate with creators reliant on traditional ad income?

The podcasting industry has thrived on dynamic ads and host-read sponsorships, but Spotify’s model steers creators toward baked-in ads for video. This requires creators to think differently—episodes without ads need to be uploaded quickly, eliminating the chance to monetize later. 

Advertisers, in turn, might need to rethink their strategies for working within this new framework. It’s a significant operational shift for creators and a potential shake-up for the advertising world.

What Spotify is betting on

Spotify’s big play seems to be for time and attention. With twice as many Premium subscribers as YouTube Music, they’re betting that creators and audiences will follow their lead. But will they? Platforms like YouTube, with their flexibility and proven earning potential, remain strong competitors. 

The initial rollout in wealthy, English-speaking countries like the US and Canada makes sense. These regions represent significant podcast listenership and a substantial portion of Spotify’s subscriber base. 

For example, 135 million Americans listen to podcasts monthly, and one-third of Canadian adults do the same. Canada has witnessed a 65% rise in monthly listening in the past three years. Spotify is betting that these engaged audiences will transition to Premium subscriptions, potentially creating a new growth phase in already saturated markets.

For creators, the decision might come down to weighing the cost of fewer tools and discovery opportunities against the potential of Spotify’s premium user base.

Would you make the jump, or would you wait to see how this plays out? It’s a bold gamble that could redefine podcasting, or just carve out a niche in the growing video creator space.

Wrapping it up

Spotify’s recent update to remove dynamic ads in video podcasts is a big change for creators. Instead of relying on ad impressions like other platforms, creators can now earn based on how much their content is actually watched. The consumption-based model means creators get paid for engagement, not just views, making it a more fair and rewarding system for content creators.

Spotify's move to premium subscriptions is definitely an interesting strategy, especially as it competes with platforms like YouTube. Offering an ad-free experience could be a big draw for creators who are tired of ad interruptions. 

However, the real challenge will be whether creators embrace this shift. YouTube’s ad-based model has been the dominant revenue stream for many content creators, so moving to Spotify’s model might feel risky. 

Also, Spotify’s new structure may not suit every creator, particularly those who depend on targeted ads or larger-scale campaigns for income. It will be fascinating to watch how creators respond to this change.

What’s exciting is the potential for Spotify to balance the needs of creators, listeners, and advertisers, possibly setting a new standard in podcasting. However, like with any big change, it’s going to take time to see how it all shakes out. It’s definitely something to keep an eye on as it unfolds!