Spotify Invested $100 Million in Podcasters Amidst Escalating Creator Conflict

Since January, Spotify has disbursed over $100 million to podcast creators and publishers, as reported by the New York Times’ Dealbook.

These payments stem from a program launched in 2025, which opens up new revenue opportunities for eligible hosts. This initiative also aims to draw more creators (and their audiences) to Spotify, especially as video podcasting has gained traction on YouTube.

Video content now leads the podcasting landscape. According to Edison’s survey, more than half of Americans aged 12 and older have watched video podcasts — primarily on YouTube. Report As of January, Spotify claims to have attracted 1 billion podcast listeners each month, positioning itself as the leading platform for podcasts. Meanwhile, Media King continues to surpass Spotify and Apple Podcasts, with its original video podcasting efforts that began in 2019.

In contrast to YouTube, Spotify has become somewhat vulnerable in the podcasting space, attracting 170 million podcast listeners per month from a broader audience of 675 million. For context, YouTube invested over $70 billion into creators and media entities from 2021 to 2024.

On Tuesday, the company announced its financial results, projecting approximately 540 million euros in pre-tax revenue within a total of 4.2 billion euros, as per S&P Capital IQ.

Although Spotify is listed on the New York Stock Exchange, it is headquartered in Stockholm. The company maintains a stronghold in the sector due to its impressive roster of talent, including the distribution of advertisements for the widely popular Joe Rogan Experience podcast. It achieved its first profitable year in 2024, with Rogan’s podcast also available on YouTube.

The new partner program is designed to mitigate YouTube’s advantages. Like YouTube, Spotify historically compensated creators solely through ad revenue sharing, but it now provides further incentives for video uploads. Eligible creators can earn additional revenue depending on the engagement levels of their premium subscribers.

Spotify is actively working to attract additional viewers. In November, they unveiled their partnership program, stating that paid subscribers in specific regions would not encounter dynamic ads on video podcasts. As a result, video consumption has surged by over 40% since January, according to Spotify.

The pressing question is whether Spotify can persuade creators to shift their priorities.

David Coles, host of the horror fiction podcast “Just Creepy: Scary Stories,” mentioned that he is reevaluating his “home platform” after Spotify’s revenue recently outpaced YouTube’s. In the last quarter, Coles reported earnings of about $45,500 from Spotify. Since joining the new partner program, his Spotify revenue increased to around $81,600.

For larger shows and podcast companies like YMH Studios, which boasts 2.1 million YouTube subscribers and produces popular podcasts such as “2 Bears, 1 Cave,” the revenue boost has been even more pronounced. YMH Studios reported that its quarterly earnings from Spotify have more than tripled after enrolling in the partner program, although it chose not to disclose specific figures.

Creators have pointed out that this is still early in the program, but Alan Abin, head of advertising revenue at YMH Studios, referred to the new payment framework as a “game changer” and a “pleasant surprise.”