Nov 15th | Is video Spotify's next big thing?

Hey everyone!

Happy Friday! I don’t know about anybody else, but I am ready for the holidays even if I’m cringing at all the stores already playing holiday music in November. This week we’re asking ourselves whether video couple possibly be the future of Spotify, how Tencent is converting so many of its users to its VIP tier, and thanking the music overlords that SoundCloud has finally overhauled its user upload experience.

As per usual, Indie Insider is brought to you by Habitat Financial. The easiest royalty accounting and financial operations platform available to independent music businesses. If you’re looking for automation and flexibility when it comes to reporting and payments, look no further than Habitat Financial.

📱 Spotify Makes the Leap into Video – A Major Shift in Entertainment

Spotify has been slowly but steadily growing its video offerings, primarily through its video podcast feature. And it's working:

• 170M users have streamed video on Spotify—up 60% YoY! 🚀
• The number of new video creators on the platform has spiked by 50% in 2024 alone.
• Spotify's user engagement has seen impressive growth. In 2020, users were spending an average of 30 hours per week on the platform; by 2024, that number has grown to 40 hours per week. 📈
• Internally, they are attributing this to the growth of video on platform.

Now, Spotify is taking things a step further by allowing video creators to earn revenue directly through the platform, including ad revenues and even a slice of the premium subscription pie—similar to how artists earn from streams. To be clear, it’s understood that this will come from a separate revenue pool than music royalties.

This move is clearly part of a bigger vision: Spotify could use moves like this to make a play in becoming and entertainment "super-app" where fans can access all types of entertainment, not just music. Would that be spreading themselves too thin? I think so. Better for them to focus on increasing their vertical integration and becoming the go-to spot for anything that touches on music and audio. In the meantime, artists should take full advantage of Spotify’s features to increase visibility. This is something we’ll be watching closely. 🎥

🔑 Takeaway: For artists, optimizing your Spotify profile and taking advantage of video features is crucial—I still see way too many incomplete profiles, especially from up-and-coming acts. Take the time to build your presence across all available tools! 🎤

 💰 Tencent Hits Super-User Goldmine – A Potential Blueprint for Streaming Revenue

Tencent is showing us how to grow streaming revenue by taking things up a notch. While the music industry has long been locked in a cycle of $11/month subscriptions, Tencent has found a way to monetize deeper—albeit at a lower price point:

• 8% of Tencent’s users are opting to pay 5x the standard cost for the Super VIP tier. That's a massive win for the platform, especially given the low base cost of $1/month.
• The Super VIP tier includes features like premium audio quality, vehicle integrations, and exclusive long-form audio. 

Meanwhile, Spotify is reportedly working on a super-premium tier of its own. It’s clear that the future of streaming isn’t just about raising prices, but also about adding features that appeal to users looking for a deeper, more immersive experience.

🔑 Takeaway: The secret to boosting revenue in the music streaming industry could be all about adding premium features for those willing to pay more. Will U.S. consumers embrace a more expensive tier with better perks? It's an interesting question. 💡

🎶 SoundCloud Overhauls Monetization – Making It Easier for Artists to Earn

SoundCloud just revamped its upload process, and the changes are set to empower creators more than ever. Here’s what you need to know:

• The new system simplifies the uploading process, making it easier for artists to get their music out there.
• SoundCloud’s monetization options are now integrated directly into the upload process. No more confusing, fragmented steps!
• These new features are available to SoundCloud Next Pro subscribers, making monetization almost instantaneous.

SoundCloud has long been a first stop for new artists, and this change makes it easier for them to begin earning money—no need for deep industry knowledge. With more tools and a simpler process, SoundCloud is catering to the growing creator economy.

🔑 Takeaway: If you’re an emerging artist, SoundCloud is still one of the best platforms for getting your music out there and starting to earn money early on in your career. Take advantage of the easy monetization process and get paid for your creativity!

 As always, I hope you have a great weekend full of rest and relaxation!

Calvin Windschitl