Spotify’s Big Bet on Video Podcasts: Win for the Podcast Industry or Just Hype?

Welcome to another edition of The DWNLOAD Report. Earlier today, I had a conversation with Marshall Williams, Partner & Chairman of AdResults Media and easily one of the sharpest minds in the audio industry when it comes to monetization. The topic? Video—and specifically Spotify’s latest big push into video podcasts. Marshall had some great takes (as usual), many of which I’ll mix in here, but the core question was this: Is this good for the podcast industry?

Spotify didn’t hold back with this announcement, rolling out the red carpet at a glitzy LA event to showcase talent and drum up excitement. But when the confetti settles, what does this move actually mean for podcasting in terms of growth and revenue? Is it a win for the industry—or just another platform power grab?

Let’s get into it.

Spotify’s Video Strategy

Spotify has been working hard to get creators to adopt video on the platform, but let’s be real—adoption has been slow, and it’s not hard to see why. Until now, adding video to Spotify meant uploading directly to their platform and handing over control. Spotify would monetize the content using Streaming Ad Insertion (SAI), a different ad tech than the Dynamic Ad Insertion (DAI) most large podcasts and networks rely on. Why does that matter? Because SAI's technology is nowhere near as advanced as DAI.

But it gets worse. By requiring creators to use SAI for video, Spotify also forces them to give up control of their inventory. This might not seem like a big deal for a solo podcast, but for networks managing multiple shows and advertisers, it’s a logistical nightmare. Suddenly, they have to reshuffle their entire sales strategy just to accommodate Spotify’s video push.

Now, let’s be fair: YouTube presents similar challenges when it comes to inventory control. Podcasts on YouTube can use baked-in ads (ads embedded in the content itself) but have no say over what pre-roll or mid-roll ads YouTube decides to run. However, YouTube offers something Spotify doesn’t: existing scale for video. The revenue share checks from Google can be massive for podcasts with a significant audience, and while networks might prefer to control that inventory, it’s hard to argue with the results. Plus, let’s not forget YouTube’s algorithm—it can be the best marketing tool in podcasting if you know how to use it.

Take Bill Simmons as an example. In my Q3 update a few weeks ago, I noted how Simmons, whose The Ringer network Spotify acquired in 2020, has yet to upload video to Spotify. Instead, he recently launched a YouTube channel, posting podcasts and live-streaming his tentpole "Guess the Lines" episode weekly. Clearly, he sees the value in YouTube’s reach and revenue model—and just as clearly, he didn’t think Spotify’s SAI was worth the hassle.

So, what’s Spotify doing to fix this? Surely this big announcement is going to solve everything, right? RIGHT?!