Watch out Netflix, because rumour has it Spotify is looking to move into the video-streaming arena with exclusive, original content.
According to a report on Business Insider, the highly popular music-streaming service will attempt to increase its profits by betting on video.
While Spotify lays claim to 20m users worldwide, only a quarter of these are paying monthly subscribers and, as the service has to pay rights-holders for the catalogue of 20m songs it streams, the company’s profits aren’t quite what it wants.
The solution, it seems, is to follow Netflix’s example. Not only by jumping into the video-streaming market, but also to fund original programming and cut out the copyright fees.
Netflix has bet largely on original content in 2013 with the likes of House of Cards and Hemlock Grove. However, the jury is still out on whether Netflix’s gamble will pay off and if House of Cards’ February debut will result in new, lasting subscribers. Perhaps Spotify should wait it out and see what the response is before taking on a whole new realm.