Is Spotify gunning for Netflix as it looks beyond music?

26th Mar 2013 | 10:43

Is Spotify gunning for Netflix as it looks beyond music?

Wants to make it in the movies

Spotify could be making moves towards streaming video and creating its own shows.

Business Insider cites two sources 'briefed on the company's plans' who claim that Spotify is planning a video on-demand product that will include it commissioning original shows.

That sounds jolly familiar - why, it's only what Netflix and Amazon already do, with the former resurrecting the much-loved Arrested Development and rebooting House of Cards, and the latter green-lighting an original drama series based on Zombieland among other projects.

The sources say that Spotify is actively looking for partners to help with this 'content creation'.

TV on the radio

But why would a company that's always pushed its great love for music as one of its key selling points to an audience that also loves music bother diluting that with video?

Because despite Spotify's phenomenal success to date record labels still hold all the cards and recent reports suggest that Spotify is having trouble renegotiating terms and royalties.

Creating its own content that people pay to access via subscription could give Spotify leverage (although not over record labels until it's a phenomenal success) as well as a unique selling point that's not dependent on the whims of other companies.

That's what Netflix and Amazon are hoping for too, but it's impossible to tell at this early stage whether or not the massive investment in creating their own shows will pay off.

Either way, it seems like a huge departure for Spotify and a much bigger risk than it is for Netflix and Amazon whose subscriber base are already well invested in watching video.

So by that token, maybe Spotify should just start a band?

Spotify internet music streaming video on-demand Netflix Amazon Lovefilm
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