Spotify to enter video streaming business?

Spotify may expand beyond music streaming and integrate a web video service to its system.

Reports have emerged that the streaming service is in talks with YouTube creators, digital outlets and traditional media companies to create a streaming video service alongside its music streaming business.

Wall Street Journal claims that Spotify is in negotiations to acquire existing content from active networks, and has plans to pioneer a new original series.

Access to the video service will unlikely require a paid subscription, and video suggestions may refer to the individual users’ music tastes.

The move to video streaming will not be an unprecedented one, considering Spotify has an existing video advert system in place. The additional video service could potentially give Spotify more ad revenue, with online outlets likely to charge more for video ads as opposed to standard display or banner ads. Spotify’s ad revenue has already increased by 53% overall since last year.

TMN has reached out to Spotify, who declined to comment on speculation.

Earlier this week it was revealed that Spotify raised more than $350 million from new investors, with an $8 billion valuation. It is currently making an effort to covert free users to the premium model; last week, the service re-introduced a promotional offer that would give new customers the ad-free, premium experience at $0.99 for 3 months.

Expanding into video would mark a new territory for Spotify. Previously, rival streaming companies have ventured into the video streaming market with mixed success. While Tidal’s subscription currently includes access to music videos and exclusive live concert streams, Rdio’s experiment with video streaming in 2013 didn’t connect with consumers, due to a lack of popularity and profitability.

Spotify has announced a press conference in New York for May 20 (1am May 21 AEST). It is rumoured that the Swedish streaming juggernaut will unveil its plans during this media event.