Spotify has joined the ranks of social networking companies like Facebook, Instagram, Snap, and YouTube by introducing AUX, its new in-house “music advisory agency” for brands. This move aims to facilitate connections between brands and emerging artists for various campaigns, providing a new source of income for Spotify as brands can pay to leverage the service.
Key Takeaway
Spotify’s launch of AUX represents a significant step in the platform’s efforts to connect artists and brands, providing new opportunities for emerging artists to thrive in the music industry.
Spotify’s Collaboration with Coca-Cola and Peggy Gou
The consultancy’s first client is Coca-Cola, which has partnered with Berlin-based DJ, producer, singer, and songwriter Peggy Gou. This collaboration includes live concerts, events, social media content, a branded playlist, and on-platform promotional support. This initiative not only benefits the brand and the artist but also positions Spotify as a platform where creators can strike brand deals to support their careers.
Spotify’s Efforts to Support Emerging Artists
Spotify’s AUX is seen as a way to broaden opportunities for artists, offering them a platform for creative expression, financial support, and strategic partnerships beyond traditional industry avenues. The company aims to enable authentic connections with music fans worldwide, as highlighted by Joshua Burke, global head of Music & Culture Marketing at The Coca-Cola Company.
Challenges Faced by Emerging Artists
Despite the promise of AUX, artists and musicians may prefer better compensation for their streams rather than having to rely on brand deals. The sheer volume of music available on streaming services, coupled with the increasing use of AI-generated music, makes it challenging for new and emerging artists to gain recognition and earn a living from their art. Spotify’s updated payment model, which includes a minimum threshold for streams, further complicates the situation, prompting artists to consider brand deals as a means of growing their income.
Spotify’s Vision for AUX
Jeremy Erlich, VP, head of Music Content at Spotify, emphasized the platform’s commitment to strengthening the connections between artists, brands, and fans through AUX. He stated that AUX is a natural step for Spotify to help brands enhance their music strategy and connect with new audiences through expert insights and observations from the music team, tailored to meet brands’ needs.
