Spotify introduces AUX, a service connecting creators with brands

Social media giants such as Facebook, Instagram, Snapchat, YouTube, and others have established programs aimed at connecting creators with brands, facilitating collaborations to benefit both parties.

Spotify, a player in the music streaming industry, has now entered this arena with the introduction of AUX, its new in-house "music advisory agency" tailored for brands. While not structured as a conventional creator marketplace, AUX shares a similar goal of fostering connections between brands and emerging artists for various campaigns.

The launch of AUX represents not only a diversification of revenue streams for Spotify but also offers brands the opportunity to engage with up-and-coming talent through paid services. In its maiden partnership, Coca-Cola has joined forces with Berlin-based DJ, producer, singer, and songwriter Peggy Gou to establish a comprehensive, long-term collaboration. This partnership encompasses live concerts, events, social media content, a branded playlist, and promotional support on Spotify's platform.

Joshua Burke, Global Head of Music and Culture Marketing at The Coca-Cola Company, expressed enthusiasm for the initiative, stating, “We are proud to be an early partner to AUX, which integrates Spotify’s expertise to enable authentic connections with music fans worldwide. This is a natural progression of our long-standing partnership with Spotify and marks a key milestone for our commitment to artists and the music community. We are excited to launch Coke Studio at Spotify LA, which will provide recording support for emerging artists and a platform to promote their music.”

The platform's initiative in introducing AUX signifies a proactive step towards leveraging its music expertise to facilitate connections with brand partners. This move further aligns the platform with the dynamics of social networks, where creators actively pursue brand collaborations to sustain their careers. Notably, this initiative follows Spotify's recent update to its payment model, which aimed to inject an additional $1 billion into artist earnings.

Spotify is now providing artists who may have been sidelined by the new streaming royalties model with an alternative avenue to generate income through partnerships with brands.

In the blog post, the platform explained that AUX will expand the horizons for artists, offering them not only a platform for creative expression but also financial backing and strategic collaborations that extend beyond traditional industry channels.

“Spotify is always looking for ways to leverage our music ecosystem to deepen the connections between artists, brands, and fans,” said Jeremy Erlich, VP, Head of Music Content at Spotify. “AUX is a natural step for us to help brands strengthen their music strategy and better connect with new audiences through our expert insights and observations from our music team, tailored to meet brands’ needs.”