Spotify rumoured to launch video streaming service

According to a report from Business Insider, Spotify is planning to become a video on-demand service, as well as offering music to its customers.

The addition of original video content would put it in direct competition with other online video streaming platforms such as Netflix and LoveFilm, the two main contenders in an ongoing battle between online streaming platforms to offer the best exclusive content.

According to sources that spoke to Business Insider, Spotify is looking for partners to help fund and create unique content for the service, which could potentially lead to a new round of investment in Spotify completely.

Spotify doesn’t own any of the music that it offers so it is difficult for the company to dictate negotiations between music labels and Spotify has to pay these labels each time that a user listens to a song.

However, the acquisition of original content would – if following the success of Netflix’s offering of exclusive programming such as House of Cards – attract new subscribers, ultimately growing the company’s platform and helping to increase revenue.

Spotify is currently used by more than 20 million people and has over five million paid subscribers.