Spotify will begin paying video podcast hosts based on the performance of their videos

Spotify said Wednesday it will begin paying podcast hosts who produce popular videos on its streaming platform, as the company seeks to take on YouTube's dominance in the video podcast space. Although creators can already monetize their podcasts on the platform, they will now be incentivized to publish a video component alongside their podcasts.

By paying podcast hosts based on how much engagement their shows receive, Spotify is following YouTube's tradition. The Google-owned platform pays YouTubers billions of dollars in shared advertising revenue every year.

The company will also allow premium subscribers to watch video podcasts without ads. Spotify says this change will allow listeners to access videos without interruptions, meaning people may be more inclined to watch more content on the platform.

Although Spotify is one of the main services for listening to podcasts, YouTube still has a big lead in videos overall. By offering listeners an uninterrupted viewing experience, Spotify likely hopes that people will choose to watch video podcasts on its own platform instead of YouTube.

According to Spotify, more than 250 million users have watched a video podcast on its platform since the format launched in 2022. The company also says that nearly two-thirds of podcast listeners say they prefer podcasts with a video component.

Additionally, the number of creators posting monthly videos to Spotify has increased by more than 50% year-over-year. Spotify also announced that there are now more than 300,000 video podcast shows on its platform.

“By providing a best-in-class video offering uninterrupted by commercial breaks, combined with the flexibility and ubiquity of Spotify, we can offer your audience an experience superior to any platform,” Spotify CEO Daniel Ek said in a blog post. “And by giving you, the creators, another path to monetization that goes beyond advertising, we’re giving you the freedom to spend more time doing what you love: creating.”

The changes announced on Wednesday will take effect on January 2, 2025 in the US, UK, Australia and Canada. Eligible creators can apply for membership Spotify Affiliate Program to start monetizing their video podcasts.

Since Spotify favors video content, the company announced it will add more video features including chapters, comments, pinch-to-zoom, thumbnail scrubbing, and more.