Spotify's unskippable podcast ads, plus could they skip yours automatically?

EXCLUSIVE

Podnews’s exclusive story of August 4 unveiled “Skip Ahead”, an ad-skipping button that Spotify is trialing with some Premium members. The button becomes visible as a suggestion to a listener to skip ad breaks, intros, sponsorship messages, and even mentions of premium subscriptions.

There have been two new developments since our story.

Ads sold by Spotify could be unskippable

First - some ads are appearing on Spotify - sold by Spotify themselves - which cannot be skipped at all, even by Premium Spotify users.

Our original story showed that the “Skip Ahead” button still appeared in Spotify shows, including The Ringer. However, this clip from a user playing Spotify’s The Journal shows the “Skip Ahead” button appearing in an intro segment, but then it plays an ad which cannot be skipped at all - without a Skip Ahead button or the usual +15s skip buttons.

Originally posted by Spencer Davis on X, this account is a Premium Spotify subscriber based in the US.

There have been some reports that the “skip ahead” button was not appearing during ads sold by Spotify; but that wasn’t the case. However, this unskippable ad can’t even be skipped the usual way.

That appears to suggest that Spotify is using its platform to penalise third-party podcast companies, who are unable to produce unskippable ads in this way within content submitted via RSS.

Ads sold by anyone else could be automatically skipped entirely

It also appears that Spotify may intend to go one further - and skip ads, intros and promotions automatically, with no button press required.

In Spotify’s terms for creators, which every podcaster specifically agrees to before their podcast is visible in Spotify’s player, one section discusses what Spotify can do with the content that podcasters supply.

Podnews got legal advice about the elements that we’ve highlighted:

You retain ownership of your User Content when you post it to the Service. However, in order for us to host and/or make your User Content available on the Spotify Platform and third party platforms as applicable, and to provide our users with certain features and functions, we do need a limited license from you to that User Content. Accordingly, by submitting User Content to the Service, you hereby grant Spotify a non-exclusive, transferable, sub-licensable, royalty-free, fully paid, worldwide license to reproduce, make available, communicate to the public, perform and display, translate, modify, create derivative works from (including the right to transcribe, e.g. for the purpose of optimizing search functionalities, improving personalization, simplifying content review and/or displaying on the Spotify Platform, but not including exploitation of customary ancillary rights, e.g. merchandise, live events, etc.), and otherwise use, the User Content in connection with the operation of the Service, the promotion, advertising or marketing of the Service, and the operation of Spotify’s (and its successors’ and affiliates’) business.

If Spotify wishes to modify your show by stripping all the ads from your podcast, then it appears that - thanks to the terms and conditions you have already signed with them - they are able to; with no payment to you. Under the terms and conditions, they can take a copy, edit it, and host it for themselves.

Additionally, they can do this as a specific feature for Premium users if they so wish, since the clause goes on to suggest:

Spotify shall be entitled to use the User Content in conjunction with all of the tiers, features and functionalities, websites and user interfaces, as well as all content and software applications associated with our services (collectively, the “Spotify Platform”) (which includes, but is not limited to, the right to transcribe User Content, e.g. for the purpose of optimizing search functionalities, improving personalization, simplifying content review and/or displaying on the Spotify Platform).

Media lawyer Gordon Firemark told us: “This is a perfect illustration of why we need to be vigilant about reviewing the terms of service for the platforms and providers we use, and push back when unwanted changes are presented.   Spotify’s inclusion of the right to “modify and create derivative works from” User Content seems innocuous at first, especially when couched in terms of “optimizing search” and similar. Many other platforms include similar language.  But underlying this is something much more troubling.  Ad-skipping technology doesn’t just change the episode for the listener, it also changes the value proposition for sponsors and could even expose podcasters and networks to claims that they’ve breached their contracts with sponsors.”

It was already a concern to discover that Spotify was testing a “skip ahead” button. It now seems that there is nothing to stop Spotify from automatically ensuring that all premium users never hear any advertising on podcasts. Unless it’s a podcast from Spotify itself, however, where you may not be able to skip the messages at all.

While YouTube has made qualification twice as difficult recently, it still offers a mechanism for payment to appear on its platform. However, unlike music, Spotify pays third-party podcasters nothing for being on its service.

Spotify did not return repeated requests for comment.