According to Business Insider, Spotify is planning on launching a video streaming service to compete with Netflix and other similar offerings. We’ve certainly seen how capable Spotify is at drawing users in and the fact that the service would support music streaming as well as video streaming would undoubtedly help it grow its user base even more.
What is perhaps even more interesting is the fact that the company is looking to establish partnerships in order to stream original content. This would mark the company as a competitor to bigger name in the business including HBO and Netflix.
This could in part be due to the fact that there is not a lot of room for profit when a company doesn’t own the content that it’s streaming. Obviously getting artists to release content exclusively on Spotify is out of the question, but developing and releasing original video content is certainly within reach for a service like Spotify.
Netflix, which could turn out to be one of Spotify’s biggest competitors, had a similar problem. Netflix didn’t own any of the content they streamed, resulting in ridiculous fees which lead to decreased profits. Netflix solved the issue by releasing it’s popular series The House of Cards. This same exact strategy has worked for other companies like HBO as well. So what do you think? Would a Spotify video service stand a chance?
SOURCES
Business Insider
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