Spotify embraces video in quest for growth
Spotify wants to be more than just the global leader in audio streaming — so the company’s making moves in video streaming. Users in select markets can now watch music videos for certain songs, and subscribers in the UK can access freemium online courses through Spotify’s new partnerships with the BBC and Skillshare. Spotify plans to roll out these video features to all markets soon.
- By diversifying into video content, Spotify aims to increase user engagement within the app and attract subscribers interested in more than just music, allowing the company to grow its ad business.
- The new features follow rounds of layoffs and price hikes aimed at addressing years of unprofitability at the streaming giant — where margins improved in 2023Q4.
Podcast problems: Not all of Spotify’s growth initiatives have been equal, particularly in its podcast business, where cost-cutting measures and layoffs have been implemented. Recent podcast subscriber figures highlight disparities within the space — with Joe Rogan leading by a significant margin. Spotify has also shifted its strategy regarding hit podcasts like Rogan’s, opting not to make them exclusive to its platform. Instead, it’ll allow its top creators to distribute their content wherever they want as long as Spotify gets to handle ad sales.
