Spotify is partnering with New Amsterdam Vodka to create Ebb & Flow, a branded podcast, which represents a new revenue path for the streaming service. The five-episode series features music influencer DJ Jasmine Solano and her candid conversations with rising hip-hop artists and entrepreneurs.
Spotify currently hosts a variety of non-branded audio programs and it makes the majority of its revenues through advertising and subscriptions but has to pay out about 70 percent of the money made from each music stream to labels and publishers.
Podcasts represent a promising form of revenue, given their relatively low production costs and high engagement. In 2017, about 40 percent of people in the US said that they listened to podcasts, many on a regular basis. A 2018 IAB study found that podcasts have high ad revenue potential, predicting that they will rise to $659 million in revenue by 2020.
“We chose to do a branded podcast less because of the format and more because of the opportunity with Spotify,” said New Amsterdam Spirits marketing director Michael Sachs in a statement. “When discussing ways to work together, we wanted to be sure that we were supporting the latest and greatest that Spotify has to offer.”
The podcast promises personal interviews with guests that include Bryce Vine, GASHI, J.I.D, Saweetie, and Skizzy Mars, who will talk about their struggles moving up in the music industry. Ebb & Flow also fits neatly into New Amsterdam’s “Our Your Soul Out” campaign, which matches music with the spirts brand. One of the campaign’s first trailers follows the story of a drummer rising up to become a professional musician.
In the show’s announcement, Spotify said that it is “focused on fueling the discovery of stories, culture and communities through audio-driven experiences. Podcasts are an integral part of this discovery. And as the number two podcast provider in the world, podcasts help us to bring fans closer to the creators and subject matters they love.”