Spotify is already one of the premier sources for streaming a la carte audio on the Internet, but the popular streaming service might have far bolder plans than that, with a new report saying that Spotify intends on going head-to-head with Netflix, HBO, iTunes and Amazon Video by launching a video streaming service. Yowza!
According to a report by Business Insider citing “two sources briefed on the company’s plans, Spotify is aiming to topple Netflix as the king of all streaming video services, specifically by aping Netflix’s latest gambit and investing in exclusive content. Netflix has recently released its first original series, House of Cards, in collaboration with director David Fincher; the fourth-season of the cult classic TV show, Arrested Development, is also expected to debut on Netflix in the coming months.
Why the sudden interest in video? Sources say it’s because Spotify’s strategy for audio is failing, in large part because there are too many competitors:
The original plan for Spotify was that it would grow so popular with music listeners that Spotify would be able to dictate negotiations with the labels.
This hasn’t happened. This is in part because there are several Spotify competitors all bidding for the same rights to the same music. Even though it has become a significant source of revenue for the labels, Spotify still depends on the labels more than they depend on it.
By creating original video content and programming, Spotify hopes to become self-sufficient, freeing itself from its dependency on the content of labels and producers by becoming a label and producer itself.
It’s an intriguing rumor, but one wonders why Spotify doesn’t try to team up with musicians to create original musical content instead of leaping into an entire new business. We’ll see how it pans out.
Source: Business Insider.