Spotify has launched a new in-house “music advisory agency” for brands called AUX. Though it isn’t strictly a marketplace for creators, the program’s goal is similar: to help brands and up-and-coming artists work together on beneficial campaigns.
The company has joined the ranks of social media platforms like Facebook, Instagram, Snapchat, and YouTube in launching a programme to link content creators with brands.
Read also: Spotify launches high-fidelity audio Supremum
The opportunities AUX offers
Music is special because it can make people feel things and connect with them on a deep level. Using the power and significance of music culture makes perfect sense in a world where conventional advertising methods are having a harder and harder time standing out.
Music may be the most pervasive cultural element because it permeates practically every facet of human existence. In its simplest form, a unique music strategy establishes an honest connection that differentiates a brand from its rivals.
With genuine local authenticity in more than 180 markets, Spotify is a cultural centre with global impact. In order to keep up with the ever-changing trends, the streaming platform can rely on its extensive network, a wealth of knowledge, and years of experience.
Brand partners can now take advantage of Spotify’s expertise in the industry, extensive global reach, innovative spirit, and data-driven accuracy through AUX to develop genuine and comprehensive marketing campaigns. In the end, it all comes down to connection. Using the data from Spotify’s connected platform, AUX will link brands with artists and their fandoms.
With AUX, creatives can make a living doing what they love. The mission of Spotify is to promote artists and facilitate meaningful partners; the platform aspires to actively contribute to the success and sustainability of these artists’ careers. By providing artists with a space to express themselves creatively, financial backing, and strategic alliances that extend beyond conventional industry channels, Spotify AUX will increase the breadth of opportunities accessible to them.
The take-off of AUX
Coca-Cola, the first client, has partnered with Peggy Gou, a Berlin-based DJ, producer, singer, and songwriter. A branded playlist, on-platform promotional support, live concerts, events, and social media content are all part of the artist and brand’s long-term partnership.
Spotify is now more aggressive in connecting brands with creators and providing its music expertise to those brands. This shift positions Spotify as more of a social network where creators negotiate brand deals to support themselves. Notably, the launch comes after Spotify’s updated payment model, which was unveiled late last year and promised to generate an extra $1 billion for artists.
Opponents of the model argued that it did nothing to help up-and-coming artists and would actually reduce funding for artists who were already receiving less in order to increase it for those who were already receiving more.
Artists who aren’t included in Spotify’s new streaming royalties model now have an opportunity to recoup some of their losses through brand partnerships. Spotify promotes AUX as a way for artists to “live off their art,” but musicians and artists would prefer to earn more money from streams instead of relying on brand deals that social media influencers and creators negotiate.
New and emerging artists are finding it harder to be discovered, build an audience, and get paid due to the overabundance of music offered by today’s streaming services. With 120,000+ tracks uploaded to services daily, this problem is becoming even more severe. Even though Spotify has more than 100 million tracks available right now, the proliferation of AI-generated music could be a major problem in the future.
The new royalties model on Spotify, which sets a minimum threshold for song streams, makes an already difficult situation even worse, and artists may have to look into brand deals to increase their income.