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After more than a decade of healthy, double-digit compound annual growth, ad spending on digital audio services slowed dramatically in 2023, downshifting the space into a new era

The news: Spotify鈥檚 Partner Program has opened new monetization paths for video podcasters, enabling MP4 uploads and revenue through ads and subscriptions. Creators like Ryth report earning over $55,000 per month, surpassing YouTube earnings. However, the model doesn鈥檛 support dynamic ads for premium subscribers, prompting networks to hold back. Why it matters: Nearly half of all digital media time is spent on video, and Spotify is betting big on that trend鈥攅specially among Gen Z, who increasingly prefer video-first podcast formats. Our take: Spotify鈥檚 approach may alienate ad-heavy networks for now, but video鈥檚 growth and creator enthusiasm suggest its long-term strategy is sound.

However, Spotify dominates in the audio streaming space. Our take: Video podcasts are the next frontier for audio and video streamers alike, and unique features and less-expensive subscription options can help fuel adoption. YouTube and Spotify are the top dogs in their respective categories, but as direct competitors, Spotify has a long way to go.

In light of rising watch time on YouTube and a booming podcast ad market, video podcasts could be Netflix鈥檚 next frontier for new content.

US mobile audio app listeners spend an average of 32.3 hours with Spotify a month, compared with 3.5 hours with Amazon Music, and 0.9 hours with Apple Music, according to January data from Comscore Media Metrix Multi-Platform.

The news: Netflix is co-producing a comedy podcast 鈥淭he Big Pitch With Jimmy Carr鈥� with BBC Studio鈥檚 Audio unit, marking one of Netflix鈥檚 first forays into the podcast arena through Netflix Podcasts, per The Hollywood Reporter. The show marks the first time BBC Studios Audio has been commissioned by Netflix for a podcast.

Like Spotify has tried to say that they're the place for eBooks, for audio books. I don't think of them as that. We are trying to be the audio app, but I think of them as the place for music. And I wonder if Netflix can rebrand themselves to make people think, oh, podcasts, yes. Or content creators even, yes, Netflix is going to be the place for that. Ross Benes:.

Video is the new audio: Spotify鈥檚 push into video podcasts is showing early momentum, but it still faces stiff competition from YouTube鈥檚 dominance. Video consumption on Spotify has grown 40% since January, with some creators like YMH Studios reporting that their Spotify revenue more than tripled after joining the program.

Spotify has nearly twice as many US listeners as the next most popular digital audio platform, Amazon Music, at 103.6 million compared to 53.1 million, per our September 2024 forecast.

Just over two-thirds of the population will be digital audio listeners this year, including nearly 75% of internet users.

Spotify keeps Bill Simmons on board: The Ringer founder extends his contract as Spotify pivots toward video podcasting and sustainable ad-driven content.