Spotify simplifies earnings for creators, announces $10B podcast investment

• Eligibility requirements lowered to 1,000 engaged audience members and 2,000 hours consumed (down from 2,000 listeners and 10,000 hours), making monetization accessible to more creators
• Monthly video podcast consumption on Spotify has nearly doubled since launching the program, with users streaming twice as many video shows per month
• Creators can now monetize through third-party platforms via new API integration with Acast, Audioboom, and Libsyn, while video creators receive direct payments from Spotify premium subscribers

Summary: Spotify Expands Creator Monetization and Reveals $10B Podcast Investment

Key Developments:

Spotify announced on January 7 that it has invested over $10 billion in the podcast industry over the past five years, focusing on creator earnings, engagement scaling, and infrastructure development. The Swedish streaming giant is significantly expanding its creator monetization program to compete more aggressively with YouTube and Netflix in the video podcast market.

Program Changes:

The company is dramatically lowering eligibility thresholds for its partner program, requiring creators to have just 1,000 engaged audience members, 2,000 hours consumed in 30 days, and three published episodes—down from the previous requirements of 2,000 listeners, 10,000 hours, and 12 episodes. Since the program's launch a year ago, monthly video podcast consumption on Spotify has nearly doubled, with users streaming twice as many video shows per month.

New Features:

• Sponsorship Tools: New management tools launching in April
• Third-Party Integration: API allowing creators to publish and monetize content from platforms including Acast, Audioboom, and Libsyn
• Spotify Sycamore Studios: New production facility joining existing locations in London and New York, housing The Ringer podcasts and available to select creators to reduce rental costs

Revenue Streams:

Creators can earn from ads on free tiers and external platforms, while video creators receive additional direct payments from Spotify when premium subscribers consume their content.

Market Context:

The initiative reflects intensifying competition among platforms vying for video podcast creators, driven by rising demand and higher engagement rates for video content.