In a recent move, Spotify has followed the footsteps of Meta, YouTube, and others by launching AUX, a service designed to connect brands with creators. This new in-house ‘music advisory agency’ aims to facilitate collaborations between brands and emerging artists for various campaigns, benefiting both parties.
Spotify’s AUX represents another income source for the company. Brands can pay Spotify to leverage this new service. The first client to sign up for this consultancy is Coca-Cola, which has teamed up with Berlin-based DJ, producer, singer, and songwriter Peggy Gou. This partnership will include live concerts, events, social media content, a branded playlist, and on-platform promotional support.
This move positions Spotify more like a social network, where creators strike brand deals to pay the bills. It also offers a new way for artists, who were cut out of the benefits of the new streaming royalties model, to make money by partnering with brands.
Spotify’s AUX is set to broaden the opportunities available to artists, offering them a platform for creative expression, financial support, and strategic partnerships that go beyond traditional industry avenues. However, it’s worth noting that artists and musicians would likely prefer to get paid better for their streams, rather than having to forge brand deals like social media creators and influencers do.
With the overabundance of music offered by today’s streaming services, it’s harder for new and emerging artists to be discovered, build an audience, and get paid. Spotify’s new royalties model with its minimum threshold for streams of songs further complicates an already tough situation, necessitating artists to consider brand deals as a means of growing their income.
In conclusion, Spotify’s AUX is a step towards deepening the connections between artists, brands, and fans. It’s a strategic move that helps brands strengthen their music strategy and better connect with new audiences through Spotify’s expert insights and observations from their music team.
