What's Spotify doing lately? Well, after trying to single-handedly revolutionize the music industry, a little service called Beats Music came along and put some pressure on the music-streaming service space, Spotify included. So, to go one-up on Beats, the company might be looking to get into the video-streaming space to take on the Netflix' and Amazons of the world.
While this is still a rumor as of now, many sources are reporting that Spotify wants to shift into a music and video service that would have a heavy focus on original content and exclusive deals. Those close to the matter have said that the company is already looking at partners to both source additional funding, as well as produce exclusive content for the platform. As it stands, there is no word on if we'd see another round of investment offers in Spotify, but with a valuation of $3 billion thanks to $100 million of investment from Goldman Sachs and Coca-Cola, it seems unlikely.
We also don't know if what type of video we'd see, whether it be movies, TV shows or even just music videos. When CEO Daniel Ek was questioned about it, he professionally danced around the topic. "I won't rule it out because we're a company that looks at what we're doing incredibly long term. But right now, we're all focused on music," he said in an interview.
Can Spotify hang with the established brands in the space? With a whole bunch of companies spinning up different types of video-streaming services lately, I can see why Spotify would want to try its hand in a related space since the company is already involved with labels and owns a good portion of the media market. However, with original content like House of Cards costing Netflix $100 million to make, a company with a lower valuation than the big boys might not be able to sustain. However, if the company chooses to literally own the music video space, something nobody else is really doing legally right now, it is possible that the blend of music and music videos would sit nicely with Spotify.
Again, all of this is a rumor for now, but it does open up some interesting discussion points and possibilities. Should a music company get involved in video or vice versa? Let us know your thoughts in the comments section.