I spoke to the BBC for Radio 2, BBC World Radio and BBC World News TV on Tuesday about Spotify launching new forms of content on their platforms. Some of the video and audio is available below. There’s so much more to say about Spotify getting into video, but here is my summary:
– Spotify don’t turn a profit, despite huge revenues – and video content is generally less complex and costly to license, so could be a valuable route to turn down.
– More choice for consumers within one platform will always be better for Spotify, as the longer they can retain users within their application, the more data and potential advertising revenue can be generated
– Video advertising (to their free users) is generally more costly to advertisers than radio advertising, so will additionally increase their revenues from this source
– Daniel Ek hinted at creating original content, Spotify as a commissioner or creator is an interesting but ambitious objective. Could they be the Netflix for audio?