Spotify In-House Agency AUX to Connect Brands with Music

Spotify is rolling out AUX, an in-house music advisory agency for brands. “With AUX, we’ll use our deep expertise to counsel brands about how best to use music to enrich their campaigns and connect them with emerging artists to help them reach new audiences,” Spotify announced, joining Meta Platforms, YouTube, Snapchat and others in connecting creatives with brands. AUX aims to provide emerging artists with an avenue to another potential income source, as well as a path to wider exposure, as the idea is to get brands to pay Spotify to access the new service.

“While not necessarily a creator marketplace, the program has a similar aim — it will facilitate connections between brands and emerging artists for various campaigns benefiting both parties,” TechCrunch reports.

“Spotify is always looking for ways to leverage our music ecosystem to deepen the connections between artists, brands, and fans,” Spotify VP and Head of Music Content Jeremy Erlich said in a newsroom post. “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.”

AUX’s global chief is marketing veteran Jean-François Pathy, who the company says was instrumental in forming the new venture. “In addition to providing bespoke services for each individual project and helping brands create one-of-a-kind marketing initiatives,” Pathy and AUX will also work with artists on other initiatives “to help them bring their music to life,” Spotify explains.

“The consultancy’s first client is Coca-Cola, which sees the beverage giant teaming up with Berlin-based DJ, producer, singer and songwriter Peggy Gou,” according to TechCrunch, which explains the brand and artist “have established a long-term partnership that will include live concerts, events, social media content, a branded playlist and on-platform promotional support.”

The AUX launch comes after Spotify updated its royalty payment model, a move that drew criticism for potentially reducing artist payments even as it promised to drive an additional $1 billion to their coffers. “Now, Spotify is offering those artists cut out of the benefits of the new streaming royalties model a new way to make money by partnering with brands,” TechCrunch writes.

In other Spotify news, Variety reports that the platform “generated $4.5 billion for independent artists and labels in 2023.”

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