Spotify rumored eyeing move into video, CEO says not yetReports emerged on Monday that Spotify may make a move into providing on-demand video to match its on-demand music service, but the company's CEO denies the claims, saying such a move likely won't happen anytime soon.
The rumors suggest that the popular music streaming service is looking to take on Netflix, Amazon, and others in the video streaming sector. Citing sources familiar with the company's plans, Business Insider said that Spotify is currently looking for partners to help fund and create exclusive content à la Netflix's "House of Cards" and Amazon's potential "Zombieland" series.
The move into self-produced shows could, according to the source, give Spotify more leverage in dealing with content creators, who consistently raise their licensing fees as the streaming service grows more popular. This year, Spotify will pay the major record labels $500 million for the right to stream songs, leaving the company with a slim earnings margin.
Spotify, second only to Apple in the amount it pays into the music industry, has been looking to renegotiate its contracts with the major labels in order to pull in more money for itself and to attract more users with better free streaming options.
Speaking with CNet, though, Spotify CEO Daniel Ek said the possibility of a video on-demand service was not in the company's immediate future.
"I won't rule it out," Ek recently told CNet, "because we're a company that looks at what we're doing incredibly long term. But right now, we're all focused on music."
Ek even played down the possibility of Spotify moving into music videos, seemingly a good fit given the company's music streaming focus. Asked about the likelihood of a Spotify music video service, Ek pointed to YouTube and Vevo as leaders in the field, saying it would be easier for Spotify to partner with either of those than to attempt to develop a better product.
On the same day the on-demand video rumors resurfaced, Spotify launched a new ad campaign aimed at improving awareness of its service. The New York Times reports that the $10 million campaign kicked off with television spots on NBC's "The Voice." The central message of Spotify's ads: "For music."
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