A new method of compensating those who create videos
Beginning the 2nd of January, 2025, the users that create videos will also be paid depending on the attractiveness of the content to the users who pay for Spotify services. This measure is intended to provide creators with a more direct and direct pay. Spotify ensured that payments would be made dependant on the performance of videos which could be the key elixir for more content creators to release videos on Spotify.
Dedication and depriving automatic ads for paid subscribers
To make consumers watch more videos, Spotify will also eliminate advertisement pre-loading for video podcasts in paid subscriptions services. It is designed to enhance the user experience and allow you to make videos more attractive and less intruding than ads. The idea is to encourage subscribers to watch more content and bake in those that have shelled out for an ad-supported HBO Max experience.
Spotify vs. YouTube: Growing Competition
decision to pay the creators according to performance as measured by video engagement means that spotify is now directly in competition with youtube, which also pays its creators based on a cut of the advertising revenue. Having the powerful message at an event, the chief executive officer of Spotify, Daniel Ek emphasized that his platform would provide an experience that other platforms cannot. This is a willingness to be more in the video and the podcast market, an industry that is still largely owned by YouTube.
It’s an uncertain future for video creators
Still, controversy exists as to how Spotify will be able to calculate payments effectively. While the creators themselves will have access to more in-depth information on earnings under the tab “Spotify for Creators” The same was not said for the precise parameters for the remuneration of creators. It therefore becomes apparent that creators will need to adjust themselves to these new rules in order to determine what constitutes the video revenue.