Spotify has distributed over $100 million to podcast publishers and creators since January, according to a report published on Monday.
The report, from the New York Times, says the payout is rooted in a program launched earlier this year that expanded revenue streams to eligible hosts and programs in an attempt to attract more creators from platforms like Amazon, SiriusXM and YouTube.
More than half of Americans over 12 have watched a video podcast, mainly on YouTube, a January Edison Research report found. YouTube claims to reach one billion podcast consumers monthly, surpassing traditional audio platforms like Spotify and Apple Podcasts. Although Spotify introduced video podcasts in 2019, it trails YouTube, with about 170 million monthly podcast listeners out of a total audience of 675 million. YouTube paid over $70 billion to creators and media companies between 2021 and 2024.
Spotify, based in Stockholm and listed on the New York Stock Exchange, reports earnings on Tuesday, with expected pretax income of about €540 million (around U.S. $616.8 million) on €4.2 billion (around U.S. $4.8 billion) in sales, according to S&P Capital IQ. Despite challenges, Spotify remains influential, partly due to its distribution and ad sales partnership with “The Joe Rogan Experience,” the world’s largest podcast, which is also available on YouTube. The company achieved its first full year of profitability in 2024.
The new partner program is intended to counter YouTube’s lead. Previously, Spotify only shared ad revenue with creators. Now, it also pays incentives based on how much premium subscribers engage with uploaded videos. Video consumption on Spotify has already increased by more than 40 percent since January.
David Coles, creator of the horror fiction podcast “Just Creepy: Scary Stories,” noted a revenue shift after joining the program. His Spotify earnings rose from about $45,500 last quarter to approximately $81,600. Larger networks like YMH Studios, producer of “2 Bears, 1 Cave” and home to 2.1 million YouTube subscribers, also saw quarterly Spotify revenue more than triple, although they declined to share exact figures.
Alan Abdine, head of advertising revenue at YMH Studios, described the new program as “a game-changer” and “a very happy surprise,” while creators acknowledged these results are still early.
Spotify will disclose its financial earnings for the first quarter (Q1) of 2025 on Tuesday.
