With the help of Nebula, a platform that bills itself as a home for “smart, thoughtful videos, podcasts, and classes,” a number of creators are now formally adding video podcasts to Spotify.

The five-year-old Nebula and Spotify partnership was just announced, and it comes as the streaming service is still working to broaden its offerings. Spotify is focusing on music videos, video podcasts, and short-form clips at the intersection between Nebula’s offers at that point. The platform is borrowing from TikTok in this regard.

Additionally, data points to Spotify perhaps planning a larger UGC growth, and CEO Daniel Ek referred to educational content as “a huge potential opportunity” on the Q1 earnings call.

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Regarding the Nebula arrangement, videos are already being uploaded to Spotify under the podcast category by users like CinemaWins, Charles Cornell, and Game Makers Toolkit. Some of the episodes, which contrast with longer forms, have a duration of approximately 10 minutes.
According to reports, Spotify currently has more than 2.5 million video podcast episodes in total. Nebula CEO Dave Wiskus stressed the reach-related advantages of joining the platform in a message addressed to the union.

According to Wiskus, “Nebula is home to so many talented and thoughtful creators.” It is imperative that we establish collaborations that showcase the incredible efforts being made by our creators. Spotify allows us to reach a wider audience—one that isn’t only numerically large but also precisely the kind that would be most interested in what we do.

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It doesn’t take much imagination to see how the success of this agreement could pave the way for large-scale deals with additional third-party content providers in the future. More immediately, it seems that Spotify’s approach of using its reach—615 million monthly active users as of Q1—to open up new doors for established media is a somewhat effective one.

Spotify is now targeting profitability in earnest after cutting back the teams of its podcast operations (on which it reportedly lost billions), eliminating clearly unproductive original programming, and putting the brakes on extremely costly deals that created very little content.

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Even though audiobooks are currently free to download through digital library apps like Libby, they may eventually bring in more money for Spotify. Alongside the primary opportunity, the audiobook growth paved the way for bundling reclassifications that may result in the service paying roughly $150 million less in annual mechanical royalties to the United States.

As expected, the shift has not pleased publishers at all, and the Mechanical Licensing Collective is suing to overturn it.