Spotify is joining Facebook, Instagram, Snap, YouTube, and others in connecting creators with marketers. The business launched AUX, a brand-focused “music advisory agency.” The concept will link businesses and budding artists for campaigns that benefit both sides, even though it is not a creative marketplace.
AUX is another revenue stream for Spotify, since companies may pay to use the new service.
Coca-Cola, together with Berlin DJ, producer, singer, and composer Peggy Gou, is the consultancy’s first client. The brand and performer have a long-term engagement that includes live concerts, events, social media content, a branded playlist, and on-platform marketing.
Spotify is now more aggressive in helping business partners connect and delivering its music expertise, but it also frames the site as a social network where producers make marketing arrangements to pay the bills. Spotify’s revised payment plan, released late last year, promised artists $1 billion more. Critics stated the strategy did nothing to help young artists and would slash payments to those who earned less to enhance payments to those who received more.
Spotify is providing artists excluded from the new streaming royalty scheme with a new option to generate money by working with businesses.
Spotify AUX will provide artists with a forum for creative expression, financial assistance, and strategic relationships that go beyond usual industry paths, the firm said in a blog post.
“We are proud to be an early partner to AUX, which integrates Spotify’s expertise to enable authentic connections with music fans worldwide,” said Joshua Burke, global director of music and culture marketing at The Coca-Cola Company, according to Spotify. This is a logical continuation of our long-standing cooperation with Spotify and a milestone for our dedication to artists and the music community. We are delighted to introduce Coke Studio at Spotify LA, which will help young musicians record and market their music.”
Spotify claims that AUX allows artists to “live off their art,” but bands and artists would prefer to be paid more for their streams than develop marketing relationships like social media producers and influencers.
Today’s streaming platforms post 120,000+ songs every day, making it tougher for new artists to get noticed, create a following, and be paid. Spotify has over 100 million recordings, but AI technologies might lead to a rush of AI-generated music, worsening matters. Spotify’s new royalties scheme, with its minimum stream barrier, complicates matters, forcing artists to pursue brand arrangements to increase revenue.
“Spotify is always looking for ways to leverage our music ecosystem to deepen the connections between artists, brands, and fans,” said Spotify VP and head of music content, Jeremy Erlich. He said, “AUX is a natural step for us to help brands strengthen their music strategy and better connect with new audiences through our expert insights and observations from our music team, tailored to brands’ needs.”
