Spotify Plans To Take On Netflix And HBO With Streaming Video Service
Spotify, the on-demand music service, is planning a major change. According to two sources briefed on the company's plans, Spotify intends to become an on-demand music and video service - one that would invest …
Context & Ripple Effects
Spotify had already tested the boundaries of a music-only identity: it secured major studio deals tied to a proposed movie service in 2011 and recast itself as a music platform later that year. Its 2012 Discovery, Collection and Follow features also gave it tools for finding and sharing content, not merely playing tracks.
The reported video plan is unconfirmed, but it matters because Netflix is already using viewing data to guide original programming while HBO is building digital products through a dedicated Seattle development office. Spotify would be entering a market where content rights and product differentiation are central.
First-order effects
- If Spotify proceeds, its product and licensing efforts expand from music catalogs into on-demand video, requiring a service proposition that spans two distinct content businesses.
- The reported move places Spotify in direct competitive territory with Netflix and HBO, though the company has not confirmed the plan.
Second-order effects
- Netflix and HBO face another service seeking consumer attention across connected devices, increasing the value of distinctive programming and discovery features rather than catalog breadth alone.
- For Spotify, video rights negotiations would add a new set of content suppliers and potentially shift investment away from music-only product development.
Third-order effects
- If streaming services continue to combine formats, the competitive unit shifts from a single-media subscription to a broader content platform whose recommendation, social and rights capabilities reinforce one another.
The trend: Streaming companies are extending beyond their original media categories to compete for consumer attention through integrated content platforms.