Friday, October 27, 2017

Spotify ripping up video strategy and starting again | UNLIMITED | CMU


Spotify’s new video boss Courtney Holt is ripping it all up and starting again, according to Bloomberg. The former MTV and MySpace exec has reportedly cancelled all existing video-based programmes being made for the streaming firm – including some yet to be published – in order to write a whole new video strategy, at least the company’s third.

Spotify has been attempting to get some video content off the ground for some time, with little success, despite some high profile collaborations. Original content is a way for Spotify to distinguish itself from rival streaming platforms – which all have a very similar catalogue of tracks on offer – and could also ultimately reduce the streaming platform’s royalty obligations, if more users spend more time consuming audio or video the service itself owns.

Video is obviously attractive, as it’s where lots of consumer attention and advertising money has been moving of late. We all know that video has been a priority at Facebook for a while, as it vies with Google’s YouTube to be the premiere destination for video content online.

To date, Spotify has tried both licensing video content in from other sources and making its own original shows, but nothing has really grabbed the attention of its users. That may be because Spotify subscribers primarily expect and want audio from the service. Though there has also arguably been a lack of promotion within the Spotify platform itself for its video offerings. Many avid users are probably still unaware of Spotify’s video section – and even more so the podcasts section, which also sits under Holt’s remit.

Charged with the task of finally making video a thing on Spotify, Bloomberg’s sources say that Holt is considering “the creation of a new format, code-named Spotlight, that combines audio, images and video”. Recent rumours about the streaming firm’s video strategy also suggested original content being created around the company’s more successful playlist brands.

It remains to be seen how much support Holt gets from his new employer, both in terms of resource and profile within the Spotify app.

Though with Wall Street taking an ever bigger interest in the company as it plans to list on the New York Stock Exchange, content that could reduce royalty obligations, provide market differentiation, and possibly get big brands interested too, will likely go down well with the investment community. Providing some people tune in.


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