It looks like we’re getting the best of both worlds with Spotify (SPOT) and Netflix’s (NFLX) latest partnership. Both companies announced two days ago that they’ll be launching a Netflix Hub option on Spotify where fans of popular Netflix shows will be able to access official soundtracks, playlists, podcasts, and exclusive Spotify content.
The partnership follows a similar agreement that Spotify made previously with Disney (DIS) in 2019, and is positioned as an enhanced experience for Netflix’s new roster of content. Popular TV shows like Money Heist, Bridgerton, and Squid Game have their official soundtracks added alongside Netflix-produced podcasts. With platforms like TikTok mainstreaming the concept of including bite-sized versions of catchy film or TV show soundtracks (hint: red light, green light in Squid Game), Netflix’s agreement is an attempt to capitalize on that in a way that’s monetizable.
why it matters
Spotify’s been trying to broaden its image beyond just a music streaming platform for the past year. While Netflix has been pushing the boundaries with an expansion into Netflix Games and its Audio-Only feature, the partnership is a win-win for both platforms’ challenge-and-innovate strategy.