Spotify courting media companies, YouTubers for web video initiativeBy Shawn Knight
Spotify is no longer content with simply providing music. The popular streaming service is interested in joining the booming web video bandwagon according to a report from The Wall Street Journal.
Sources familiar with the matter told the publication that Spotify has been reaching out to some well-known traditional media companies as well as those that specialize in making content for YouTube. Spotify is reportedly interested in both acquiring material and co-creating original video, sources said.
The category will likely be available to both paying and non-paying subscribers and may eventually include advertising, sources noted. Exactly what sort of content Spotify will produce and whether or not it'll be strictly music-related remains unknown.
As of January, Spotify had 60 million active listeners, 15 million of which are paying subscribers. Even still, the company has yet to turn a profit. A push into video could help reach that milestone although it won't be easy.
YouTube is far and away the dominant player in web video and even it remains unprofitable. Others including Facebook and Vessel are quickly gaining ground while established players like Amazon and Netflix show no signs of slowing down, especially in the original content department.
The company could announce its video plans as soon as this month. Conicidentally enough, Spotify said it will hold a media event in New York City on May 20 but didn't provide any details regarding the gathering.