The company plans to reward video creators financially to recognize their work. Do you think this could motivate more people to create video content?
Spotify: Investment in video content planned
After its success in music streaming, Swedish giant Spotify is now planning to enter the video sector. The company intends to compensate video creators for their contentreports Bloomberg.
This project is part of the ongoing expansion of the platform, which already offers music, podcasts and audio books.
A risky venture for the platform
It is important to note that this new strategy is not without consequences for Spotify. To pay video creators, the platform must make significant investmentsAlready considered one of the most expensive streaming services, the company could find itself in a difficult position. Will users be willing to pay more to access this new content?
A proven business model
Spotify has never hesitated to charge its users for new content. Remember that the subscription has risen to $11.99 per month, which is about $2 more than its competitors.
However, this strategy has had consequences in the past. In 2019, the company acquired the podcast companies Gimlet Media and Anchor. “This issue ended in tears”according to Bloomberg’s report, as Spotify had to lay off a “significant” number of employees.
The future of Spotify: between hopes and uncertainties
Nevertheless, Spotify is confident about the future. The platform is relying on its new advertising department to finance the video project.
Since its launch, the video podcasts available on Spotify have attracted 170 million viewers. With its advertising division, Spotify could pose a competition to YouTube, but it remains to be seen whether users are willing to pay more for this streaming platform.
