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CTV expansion could help Spotify reboot its stalled ad business

The news: Spotify is boosting its visual offerings for the big screen with a revamped Apple TV app.

  • Users can now watch music videos and video podcasts on their TVs.
  • The update also adds AI DJ recommendations, smarter queue management, a redesigned UX built for tvOS, and remote control via Spotify Connect, per 9to5Mac.

Zooming out: Spotify is joining the ranks of YouTube in placing a greater emphasis on connected TVs (CTVs), which present a lucrative ad opportunity with a highly engaged audience. We expect CTV ad spend to reach $51.67 billion in 2029, a 58.1% increase over 2025.

Why it matters: If Spotify succeeds in driving more video engagement on TV screens, it could blur the line between music streaming and traditional video entertainment. That positions Spotify as not just a YouTube or Apple Music rival, but a potential player in the broader TV ecosystem alongside Netflix and Hulu.

  • Spotify’s role could expand from a background music service to a full-fledged streaming ecosystem that’s part of users’ daily TV time.
  • It could also unlock new monetization opportunities through premium video ad placements, a segment dominated by YouTube.

The opportunity: Expanding video visibility could also help Spotify reinvigorate its ad business, which stalled in Q2. When Spotify launched music videos in 2024, we noted that the feature represented both a long-overdue addition and an effort for the music streamer to find its next major growth opportunity.

Over one-third (39%) Gen Zers said music videos are their most-watched vertical content type, per Toluna. Prioritizing this offering could lead to more engagement.

What marketers should do: As Spotify expands its CTV and broader media consumption offerings, it’s making a bid to claim more space on the biggest screen in the home. CMOs should start building CTV campaigns that merge Spotify’s audio precision with the reach and impact of video.

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