The streaming giant takes another step away from its musical roots.
Spotify is investing heavily in video content, with reports that it’s offering up to seven figures to some creators. Yet, this push comes amid persistent complaints from musicians about low streaming royalties.
It makes you wonder: Is Spotify’s video expansion coming at the expense of its primary identity as a music platform?
Spotify’s Push Into Video: Big Offers, No Exclusivity
According to a Bloomberg report, Spotify has been approaching video creators with lucrative deals up to seven figures to add their shows to the platform.
But, unlike previous agreements, these deals don’t focus on rights. They are mostly non-exclusive, so creators can still control their content.
The deals are set up differently for each creator. Some might get those big seven-figure amounts, while others are asked to share their shows for free in exchange for marketing help. This diverse approach suggests Spotify is casting a wide net to attract both big-name video creators and new talent.
Spotify’s goal seems clear: build a vast video catalog while minimizing financial risk.
“The popularity of video is surging on Spotify, but our making deals with creators is not new,” a Spotify spokesperson told Bloomberg.
“From The Comment Section to our recent renewals for What Now? with Trevor Noah and The Joe Rogan Experience , Spotify has worked with podcasters and creators on shows that include video for several years. Per those agreements, we never comment on the individual details as we have a wide array of partnerships.”
However, this isn’t the first time Spotify has offered a similar high-paying, non-exclusive deal.
Back in the day, the company spent over $1 billion on exclusive podcast deals. But recently, it entered a $250 million agreement with Joe Rogan for a non-exclusive distribution of his podcast.
Now, Spotify seems to be turning its attention to video, using the same strategy.
It’s not surprising, though, since more than 170 million users have already watched a video podcast on the platform.
Recent Video Partnerships and Content Deals
To accelerate its video expansion, Spotify recently signed deals with different video content companies.
In July 2024, Spotify partnered with Cineverse to add full TV episodes to its platform. Cineverse is said to share content from its catalog of over 70,000 works, including shows like The Dog Whisperer.
Spotify also teamed up with Nebula, a creator-focused platform, in June. This deal brings a variety of content from Nebula’s top creators, like CinemaWins and FD Signifier, to Spotify’s 615 million global users.
The difference is, Nebula’s content will be hosted on Spotify for Podcasters, so it can maximize the platform’s tools for building communities and connecting with fans.
Ongoing Artist Royalty Disputes
As Spotify aggressively pursues video content, it continues to face criticism from musicians over low royalty payments.
If Spotify can spend so much on deals to add non-music content to the platform and move away from its main purpose, why can’t it just pay artists more?
The contrast is stark: while video creators are potentially receiving seven-figure deals, many musicians struggle to make ends meet from streaming royalties.
But, recently, the issue has worsened with Spotify’s decision to bundle music and audiobooks. This change allowed Spotify to lower the royalties it pays to songwriters.
David Israelite, CEO of the National Music Publishers’ Association (NMPA), accused Spotify of exploiting a loophole to reduce payments.
He called the move “cynical” and potentially “unlawful” and referred to a 2022 settlement that laid out gradual increases in royalty rates for streaming services over five years. Spotify’s move, he argues, keeps the platform from adhering to that.
Spotify, for its part, has defended the decision. According to it, the lower rates are legal and that they plan to pay more to publishers in 2024 than in past years.
Still, with the company spending heavily on video, the artist royalty issue remains a sore point.