Spotify to Stream Movies, Create Original Content

Orange Switzerland teams-up with Spotify to offer music streaming to the youth market

Music-streaming service Spotify has become a huge player in the on-demand music streaming scene, and is now looking to enter the realm of on-demand video streaming. According to Business Insider, Spotify will compete head on with the likes of Netflix and HBO Go by providing original content as well as access to a library of other content.

Spotify has picked up some substantial investment from companies such as Coca-Cola and Goldman Sachs, but is still having a hard time turning a profit. Spotify does not own its content, but rather pays record labels for access to their songs. This model is increasingly hard to manage for Spotify, as prices for access to songs climb as Spotify’s popularity rises. A variety of other music streaming services are bidding for the same access, thusly allowing the record labels to charge whatever they see fit.

Netflix has faced similar problems, with movie studios charging high prices for content, leaving Netflix with a small profit margin. Netflix decided to make original content in an attempt to woo more users and increase profits, releasing its original series House Of Cards last year. Whether the original content model will pay off however, remains to be seen. Production costs of original series are expensive to produce, but Netflix and now Spotify are investing now for the hope of more subscribers in the future.

This announcement highlights changes of the entertainment industry, as smaller studios are able to create content on par with traditional Hollywood studios.

[Via: Business Insider]

  • big dog

    music companies should stop being suck dicks and realise that services like spotify are a shining beacon for the music industry. Does anyone remember how expensive albums were in the days before ipods?! corporationy bastards!

    • bigger dog

      Yea and do you realize how much it cost to make these albums and market them so that you would even know that they were available??? That is like saying, “How dare grocery stores charge for their food”

      Your theory is so Americanized… “I want if for FREE”

      • First Post on the Internet

        Who says music needs to be marketed? totally different comparison to a grocery store. Music used to be discovered through word of mouth or the occasional play on the radio when we were younger, and now its been shoved through our brains everywhere we turn.. (thats probably marketing to blame) but still, I have found heaps of good music on spotify which I havent seen ‘marketed’ anywhere. Spotify is great.

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