Spotify just announced the launch of AUX, its new in-house “music advisory agency” for brands. The program has a goal: to create connections between brands and emerging artists for campaigns benefiting both parties.
Facebook, Instagram, Snap, YouTube and other social media companies have programs to connect creators with brands, and now Spotify can be added to the list.
Spotify created AUX as an additional revenue stream, for brands to use for promotional purposes. Coca-Cola is using AUX to collaborate with Berlin DJ Peggy Gou to create a partnership. This alliance will span live performances, events, social media initiatives, a curated playlist, and promotional activities on the platform.
So there are a lot of options for Creators to tap into. If you're new to the game check out the Spacelab How To Be A Creator guide to get started. Spotify now presents a novel avenue for artists excluded from the benefits of the updated streaming royalties system to generate income through brand partnerships.
This marks Spotify's shift towards actively creating relationships between brands and musicians, offering its music industry insights to partners. It also suggests Spotify's evolution towards a platform resembling a social network, where collaborations with brands are a common means for creators to earn income. This will help you when you make your content blueprint as a creator.
Also check out the Spacelab guide for Why You Need A Content Strategy.
This development comes on the heels of Spotify's revised payment structure introduced last year, which aimed to allocate an additional $1 billion to artists. However, this model has faced criticism for allegedly disadvantaging emerging artists by reducing their payments to favor more established ones.
Despite Spotify's promotion of AUX as a way for artists to financially sustain themselves through their work, many artists and musicians would prefer to receive better compensation for their streaming rather than having to secure brand partnerships, akin to social media influencers. |