Spotify will be launching its much-anticipated video service on Android this week, according to a report from the Wall Street Journal.
Rumors of Spotify launching its own video service began last year with a report from the Wall Street Journal saying that the company wanted to compete on the same front as YouTube and Facebook.
Details on Spotify’s video expansion aren’t firm, but it seems like users will primarily see content from providers like BBC, Comedy Central, ABC, ESPN and many others. In that sense, Spotify’s video service won’t be like YouTube or Facebook, as it won’t be letting individual users create content.
Spotify’s VP of Product, Shiva Rajaraman, told the Wall Street Journal that video would be delivered to users in the form of playlists. With that in mind, users would see bundles of videos called “News of the Week” or even “Laughs at Lunch,” which would be a compilation of video from Comedy Central or snippets from Jimmy Kimmel Live.
There aren’t any concrete details on how Spotify plans to monetize this video either. The company is paying partners like BBC and ESPN to license content, but it won’t make any money off of this initially. The primary goal is to increase user interaction and time in the app, as well as attracting more users and getting them to buy a ad-free subscription.
While Spotify won’t be monetizing video straight away, Spotify’s Chief Executive Daniel Ek last year told the Wall Street Journal that video ads would eventually become “an important revenue source.” And rightly so, as the company would no doubt need its video front to become profitable at some point.
Rajaraman did tell the Wall Street Journal that they’re offering this service purely from a demand standpoint, but it will no doubt help sustain the company as the music-streaming game gets even more competitive.
We’ll no doubt hear more concrete details after Spotify officially launches its video front this week. Stay tuned!
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