Spotify’s billion-dollar investment in podcasting has not stopped YouTube from overtaking it as the top platform for video podcast consumption, a shift that forces labels, publishers, and rights holders to rethink distribution strategies for audio content that increasingly relies on video formats.
YouTube Overtakes Spotify in Key Markets
New data from Edison Research confirms that YouTube has surpassed Spotify as the most popular service for video podcast consumption in the United Kingdom. Among weekly British podcast listeners aged 15 and older, 29% chose YouTube as their primary platform, edging out Spotify’s 28% share. The gap is even wider in the United States, where Edison reported in October 2024 that 31% of weekly podcast listeners aged 13 and up used YouTube most, compared to Spotify’s lower standing. This dominance stems from YouTube’s entrenched position in video content, which podcasters have increasingly adopted by recording shows in both audio and video formats to meet consumer demand for dynamic viewing experiences.
Spotify’s Exclusive Deal Pivot and Margin Struggles
Spotify spent more than $1 billion on exclusive podcast deals over the years, securing high-profile partnerships with Joe Rogan ($100 million initially, renewed for $250 million), Alex Cooper’s Call Her Daddy ($60 million), Kim Kardashian, the Obamas, and Prince Harry and Meghan Markle. These deals helped boost podcast revenue by 20% from 2021 to 2022, but founder and then-CEO Daniel Ek later acknowledged that the expensive contracts dragged on margins. The company subsequently pivoted its strategy, cutting costs, canceling shows, laying off staff, and halting new exclusive deals with big-name podcasters. Despite launching video podcast features and a revenue-sharing program for creators in January 2024, Spotify struggles to pull users away from YouTube, where many listeners prefer to watch rather than just listen.
The Video-Forward Reality of Modern Podcasting
The industry’s shift toward video-forward podcasting has left Spotify at a disadvantage despite its infrastructure investments, including a partnership with Netflix and acquisitions of podcasting platforms like Megaphone and the advertising network Podcorn. Many users express disinterest in Spotify’s growing video content, stating they use the platform primarily for music listening. As video and audio content continue to overlap, creators and listeners benefit from more engaging experiences on YouTube, which already shares advertising and subscription revenue with video creators. For Black music professionals and radio executives, this trend signals that podcast distribution must now account for video visibility, searchability, and monetization models that favor platforms with built-in video ecosystems.
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