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Spotify follows Meta, YouTube, and others to offer “AUX”, a service that connects brands and creators

TechBrunchBy TechBrunchFebruary 22, 20243 Mins Read
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Facebook, Instagram, Snap, YouTube and other social networking companies offer programs that connect creators with brands, and Spotify is doing the same. The company announced the launch of AUX, a new in-house “music advisory agency” for brands. Although not necessarily a creator marketplace, this program has a similar purpose. We foster connections between brands and emerging artists, delivering a variety of campaigns that benefit both parties.

AUX is also another revenue stream for Spotify, with the company saying it allows brands to pay Spotify to use the new service.

The consultancy's first client is Coca-Cola, as the drinks giant partners with Berlin-based DJ, producer, singer and songwriter Peggy Gou. Together, the brand and artist have established a long-term partnership that includes live concerts, events, social media content, branded playlists, and promotional support on the platform.

This move will see Spotify take a more proactive stance in terms of fostering connections and offering its music expertise to brand partners, but it will also position the platform as more of a social network and support creators. will enter into a brand agreement to pay the fees. The announcement specifically follows Spotify's latest payment model announced late last year, promising to pump an additional $1 billion into artists. However, critics of this model argue that it does little to support emerging artists, and instead reduces payments to artists who already earn less and increases payments to those who receive more. He said it would be.

Spotify is now offering artists who don't currently benefit from the new streaming royalty model a new way to make money by partnering with brands.

“Spotify AUX expands the opportunities available to artists, providing a platform for creative expression, financial support, and strategic partnerships beyond traditional industry avenues,” the company explained in a blog post.

“We are proud to be an early partner of AUX, bringing together Spotify’s expertise to enable true connections with music fans around the world,” said Coca-Cola Company Music and said Joshua Burke, global head of cultural marketing, in a statement shared by Spotify. . “This is a natural progression of our long-standing partnership with Spotify and an important milestone in our commitment to artists and the music community. We are excited to launch Coke Studio at Spotify LA. , providing recording support for emerging artists and a platform to promote their music.”

Spotify touts AUX as giving artists new opportunities to “live off their art,” but artists and musicians are better off streaming than signing brand deals like social media creators and influencers. You'll want to get paid.

But the plethora of music available on today's streaming services, with more than 120,000 songs uploaded to the services every day, makes it difficult for new artists to be discovered, build an audience, and get paid. Masu. Additionally, Spotify currently offers more than 100 million songs, and AI tools could eventually lead to a flood of AI-generated music. bad. Spotify's new royalty model, which sets minimum standards for streaming music, complicates an already difficult situation, forcing artists to consider brand deals as a way to increase their income.

“Spotify is always looking for ways to leverage the music ecosystem to deepen connections between artists, brands, and fans,” said Jeremy Ehrlich, vice president and head of music content at Spotify, in a statement. mentioned in. “AUX is a natural step in helping brands enhance their music strategy and better connect with new audiences through the expert insights and observations of music teams tailored to the brand’s needs.” he added.



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