Spotify Technology S.A. (NYSE: SPOT) just announced plans to roll out music videos to its premium subscribers in the U.S. and Canada over the coming weeks. This move follows a beta launch earlier in 2025 that started in markets like the U.K., Germany, and Brazil, where Premium users could tap a “Switch to Video” button in the Now Playing view to watch full official clips without leaving the app. Users can rotate their phones for full-screen viewing, and the audio syncs perfectly, making it feel seamless whether they stick to sound or add visuals. The initial catalog spotlights artists such as Ariana Grande, whose high-energy performances could draw in pop fans, Olivia Dean with her soulful vibes, BABYMONSTER bringing K-pop flair, and Addison Rae blending TikTok fame with music visuals. These choices mix global stars and rising names to test what clicks right away in North America.
Think about how people already use Spotify. They build playlists for workouts, commutes, or chill sessions, all audio-focused. Now, videos layer on that experience without forcing a switch to another app. Premium listeners, who pay around $11 monthly in the U.S., get this exclusive access first, which aligns with Spotify’s push to justify those subscriptions amid rising costs for music rights. Early beta data showed videos boost engagement: tracks with visuals saw 34% more revisits within a week and 24% higher save or share rates. Distributors handle uploads for now, linking videos directly to tracks, and artists can track streams in Spotify for Artists tools. This setup keeps discovery organic, surfacing videos from artist pages, search, or recommendations.
YouTube, owned by Alphabet Inc. (NASDAQ: GOOGL), has long dominated music videos as the go-to free hub, with billions of views monthly and features like seamless audio-video toggles in YouTube Music. Spotify enters this fray by keeping users inside its ecosystem, where it already holds over 600 million monthly actives, many hooked on personalized playlists. Immediate pressure hits YouTube’s ad revenue model: free users flock there for videos, but Spotify Premium’s ad-free videos could lure them to switch, especially if playlists auto-suggest visuals for hits like Ariana Grande’s tracks. YouTube responds fast in such battles, as seen with its Shorts push against TikTok, so expect quicker video recommendations or Premium perks to counter.
The competition sharpens around user habits. Spotify bets videos will deepen loyalty among its 250 million Premium users globally, nudging free tiers to upgrade for uninterrupted viewing. YouTube, with its vast free library, might ramp up Music Premium trials or integrate more Spotify-like discovery to retain casual watchers. Both platforms chase the same young audience that multitasks across apps, but Spotify’s audio-first strength gives it an edge in playlists blending tunes and clips. Early tests proved visuals make songs stickier, so whichever nails frictionless playback wins daily sessions.
Artists benefit too, as Spotify videos tie straight to streams, potentially lifting royalties without splitting attention. Labels like those behind BABYMONSTER or Addison Rae gain a premium showcase rivaling YouTube’s reach. This North American push tests if videos convert browsers to superfans amid slowing subscriber growth for both giants. Forward momentum lies in who iterates quickest on feedback, like adding landscape playback refinements or broader catalogs by early 2026.
