No longer happy with just dominating music streaming, Spotify now sees its future in web video, with the company already in discussions with content creators about joining its new service.
Despite YouTube and Facebook being the dominant two players in the market, Spotify still sees the potential for breaking into it being a sound business decision that could totally change the fabric of the Swedish company.
According to the Wall Street Journal (WSJ), sources close to Spotify have revealed that it is in talks with a number of digital media companies to partner with them to create content for the new service.
No doubt to the worry of Google, Spotify has also been in talks with a number of online networks that have established themselves on YouTube about jumping over to its service to launch new content.
Some of the media groups that have been approached, according to the sources within the company, include Fullscreen, Maker Studios, Tastemade and Time.
Later this month, on 20 May, a media event is planned, reportedly, which will reveal more details of the service to the general public.
However, speaking to the WSJ, e-market analyst Paul Verna said being able to monetise the service will be an immense challenge for Spotify: “So many companies have doubled down in this space that differentiation and monetisation are going to be increasingly difficult.”
To facilitate the expansion, Spotify will no doubt be relying on the additional US$350m it raised in funding earlier this month, bringing the company’s total valuation in to the region of US$8bn.
Spotify logo image via Scott Beale / Laughing Squid