Spotify Heats Up Competition with YouTube with the Spotify Partner Program, Clips & Custom Thumbnails
Spotify announced the Spotify Partner Program. It enables creators in the US, Canada, Australia, and the UK to monetize their podcasts in two ways: Ad Revenue, where creators share in ad revenue from Spotify and other platforms, and Premium Video Revenue, where creators earn based on video consumption by Premium subscribers, who will enjoy an ad-free experience.
Additionally, Spotify has rolled out new features, including the ability for creators to upload clips, customize episode thumbnails, and access enhanced analytics and video tools.
These updates are part of a broader initiative: Spotify is rebranding Spotify for Podcasters to Spotify for Creators.
Why It Matters: Spotify is ramping up competition with YouTube for podcasting dominance by borrowing elements from YouTube’s model.
The introduction of Ad Revenue and Premium Video Revenue provides new monetization opportunities, offering creators additional incentives to bring their video podcasts to Spotify, particularly those who haven’t done so yet.
With the addition of native clipping and custom thumbnails, creators can now use short-form video to boost podcast discoverability directly on Spotify. This reduces creators' reliance on sharing short-form content across multiple platforms like TikTok, Instagram, and YouTube to drive users back to their podcasts on Spotify. Creators can still do that, but they may find it easier to share clips directly on Spotify, with viewers transitioning seamlessly into full episode listens.
The custom thumbnail feature also allows creators to present their podcasts in a visually appealing way, but also experiment with thumbnails as a way to increase click through and viewership, much like on YouTube.
