Spotify Might Be Getting Into Video

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Courtesy of Spotify

Spotify may be getting into the Web video business. According to the Wall Street Journal, the music streaming service has been reaching out to digital producers who specialize in making content for YouTube about potential partnerships.

Spotify could announce the video plans during a just-announced press event on May 20 in New York City -- the company refused Billboard's request for comment.

On YouTube, multi-channel networks (MCNs) like Maker Studios and AwesomenessTV run channels that boast millions of subscribers and billions of monthly page views. The Journal says Spotify is in discussion to acquire existing content from active networks and wants to lead in the creation of new original series.

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That would hint that Spotify does not plan on molding its video service into a Vevo-like portal for music videos, nor would it really resemble Netflix or Hulu.

Scalable video across its platforms could give Spotify another way to generate ad revenue, which was up 53 percent overall year over year, with mobile ads up 380 percent. Three-fourths of the company's 60 million users make use of its free tier, which relies on that advertising revenue, generating $220 million in revenue across all services in the U.S. last year, according to the IFPI. 

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At the same time, Spotify continues its effort to convert free users to paying ones, and last week reintroduced a promotional offer that would give new customers three months of its premium ad-free service for $0.99.

Meanwhile, the company continues to rake in funding, with the latest round estimated at $400 million at an $8.4 billion valuation.