Spotify reports that consumer adoption of video podcasts is growing significantly. In its third quarter earnings report, the company revealed that its video podcast catalog has expanded to include nearly half a million shows. More than 390 million users have now streamed a video podcast on the platform.
This user figure represents a 54 percent increase compared to the previous year. It also reflects Spotify’s increased investment in the video format. Back in June 2024, the company had approximately 250,000 video podcasts as it rolled out new tools allowing non-hosted podcasters to upload their videos directly. The streaming giant has also introduced features that let users engage with podcasts through comments, Q and As, and polls, making the application feel more like a social network.
As a result, the time users spend with video content on Spotify has more than doubled year-over-year, a trend largely driven by video podcasts. Furthermore, video podcast consumption has increased by more than 80 percent since the launch of the Spotify Partner Program in January. This program gives qualifying creators new ways to monetize their shows, including audience-driven payouts based on engagement from Spotify Premium users.
The company also recently announced a partnership with Netflix to distribute its video podcasts to a broader audience starting in 2026 in the United States, with more markets to follow. While investors did not ask about the specifics of the revenue-sharing agreement on the earnings call, they did inquire about how distributing podcasts off the platform would ultimately benefit Spotify.
According to incoming co-CEO Alex Norström, the move is intended to position Spotify as a central distribution hub for creators. He explained that when creators succeed, Spotify succeeds. He noted that creators want to syndicate their content everywhere, and Spotify believes in helping them reach audiences on as many platforms as possible, which aligns with the company’s core creator-first philosophy.
Later, co-CEO Gustav Söderström suggested that allowing creators to be present on both Spotify and Netflix opens up further revenue opportunities for the company. He described this as part of Spotify’s ubiquity strategy, emphasizing that while building a good user experience is important, having a strong offering for creators is equally critical.
Norström pointed out that having Spotify podcasts on YouTube previously increased awareness about the shows and their origins, which led to a net increase in usage on Spotify itself. The company expects a similar outcome with the Netflix partnership.
In addition, Spotify highlighted the television opportunity as part of this strategy, citing the recent upgrade of its Apple TV application. The company finds that the more people can use Spotify across different platforms, the more their overall usage increases, which in turn helps Spotify’s advertising business.
The company also noted that it has given advertisers programmatic access to its audio and video advertising inventory. However, it admits that 2025 is a transition year for its ads business and does not expect to see growth improve until the second half of 2026.
Spotify announced that its monthly active users increased by 11 percent year-over-year to 713 million. Revenue was up to 4.27 billion euros, which is approximately 4.9 billion US dollars, beating Wall Street’s expectations. The company saw a net profit of 899 million euros, or about one billion US dollars, during the quarter.
Despite these positive results, the company’s stock price declined after the opening bell on Tuesday. This was due to Wall Street’s concerns over Spotify’s mixed guidance for its fourth quarter.