Monday, May 11, 2015

Spotify Looking To Add Video Streaming

Spotify Video image
Reports are that Spotify has been reaching out to top YouTube content creators and traditional media companies in an attempt to accrue content for a new streaming video feature. Although no specific date for the launch has been officially announced, many believe it will come by the end of the month.

The feature is said to be free and will take advantage of the existing advertising infrastructure that the company has set up for its streaming music service.

Spotify recently raised another round of investment said to be around $350 million on the basis of a total valuation of $8 billion. Speculation is that the introduction of video played a large part in raising the cash.

While it's difficult to make money with streaming music, video streaming (even if it's free) is another story, as more and more brands expand their advertising in that area. Of course, YouTube hasn't done too badly with that model either.

Another reason why Spotify might be going that route is from pressure brought by other streaming music services like TIDAL and Google Play, which also offer video. That said, Rdio also tried a video feature but abandoned it after 6 months.

Spotify also sees the upcoming competition from both Apple's new music service and from Google's Music Key, and views adding video as the best way weather the storm of their launches. That's also why we'll probably see a Spotify video launch sooner rather than later.

Whether the streaming service's new video feature will actually gain traction is another story.

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