The company is known for its music streaming service
Spotify is all set to make it's move before Apple launches Beats, a music streaming service in the coming month.
Spotify is all set to make it’s move before Apple launches Beats, a music streaming service in the coming month. Spotify is a commercial music streaming service and with Apple’s Beats set to release, the Sweden-based company is looking to roll out it’s video streaming services to keep competition at bay and widen it’s reach in both music and video streaming formats. Spotify’s new move could see it also capturing a market of Youtube and Facebook as far as video streaming is concerned.
Spotify sent invitations to media regarding the release with the tagline — We’ve got some news. The company that has been doing its research and background work for video streaming and approached multi-channel networks that specialises in creating and distributing video for YouTube. Spotify has also approached traditional media companies about potential alliances.
Spotify has redefined the manner in the recording industry has worked over the past years but despite that has made little revenue from the music scene. With stiff competition from Pandora Media, Jay Z’s Tidal and the upcoming Apple Beats, Spotify is looking to expand and will be looking to do the same with video streaming business. The video service is likely to introduce advertisements with time. Despite Spotify’s music streaming being a subscription-based service, the video model will be open to both subscribers and non-subscribers as well. Despite having many consumers who opt for the premium service, over 70 per cent of the revenues go into paying royalties to record labels and artistes.
Google’s YouTube is without question one of the bigger players in the field of video streaming but of late social media platforms such as Facebook and Twitter have begun to eat into YouTube’s market share.
Spotify is looking to use it’s music streaming database and it’s consumer’s music listening habits to it’s advantage once it ventures into video streaming. Spotify has raised a sizeable amount from investors despite posting deep losses since 2006, when it was founded.
( Source : dc correspondent )
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