Facebook, Instagram, Snap, YouTube, and other social networking platforms have long offered programs to connect creators with brands, and now Spotify is following suit. The company has introduced AUX, its new in-house “music advisory agency” for brands. While not exactly a creator marketplace, the program serves a similar purpose — facilitating connections between brands and emerging artists for various mutually beneficial campaigns.
For Spotify, AUX presents an additional revenue stream, as brands can pay the platform to utilize the new service.
The consultancy’s inaugural client is Coca-Cola, which has partnered with Berlin-based DJ, producer, singer, and songwriter Peggy Gou. This collaboration entails a long-term partnership between the brand and the artist, encompassing live concerts, events, social media content, a branded playlist, and promotional support on the platform.
Spotify’s move signals a proactive approach to facilitating connections and leveraging its music expertise for brand partnerships. It also positions the platform more as a social network, where creators engage in brand deals to generate income. This launch follows Spotify’s updated payment model introduced late last year, which aimed to allocate an additional $1 billion toward artists. However, critics argue that the model does little to support emerging artists and may even reduce payments to those who already earn less, in order to boost payments to higher-earning artists.
Now, Spotify is providing an opportunity for those artists who may not benefit from the new streaming royalties model to earn income through partnerships with brands.
“Spotify AUX will expand the horizons for artists, providing them with a platform for creative expression, financial support, and strategic collaborations that extend beyond traditional industry channels,” the company stated in a blog post.
“We are thrilled to be among the first partners with AUX, leveraging Spotify’s expertise to foster genuine connections with music enthusiasts worldwide,” said Joshua Burke, global head of Music & Culture Marketing at The Coca-Cola Company, in a statement shared by Spotify. “This represents a natural evolution of our longstanding partnership with Spotify and marks an important milestone in our dedication to artists and the music community. We are eager to launch Coke Studio at Spotify LA, which will offer recording assistance for emerging artists and a platform to showcase their music.”