Spotify has had its own plans for original video content for over two years, with the original announcement taking place back in 2015.
It wouldn’t be until 2016 that those efforts started seeing the light of day, though. The platform, which is best known as the streaming music platform, planned on launching 12 original shows last year. Some of those efforts saw the light of day, and others are still in production. Or, were, as it turns out.
According to a report from Bloomberg, Spotify is currently shelving its plans for original video content, all in an effort to slow things down and get a handle on its plans moving forward. Spotify is not giving up on original video content, though, as it plans on rebooting the effort before too long.
However, current original video content will not be releasing any new episodes, and any and all in-development shows are being scrapped entirely. One of the goals moving forward, according to the report, is for Spotify to create new content that is “unique” to the music platform.
The report says that Spotify’s typical business pattern, with the streaming music platform taking up the lion’s share of attention, is only seeing a bare minimum of revenue. Specifically, between the licensing costs, upwards of 80 percent of Spotify’s entire revenue stream is paid out to music labels and other music industry types. Moreover, the report indicates that the only reason Spotify is able to stave off the growing competition from the likes of Apple Music is because of its free tier.
This is why Spotify does not want to give up on original video content, and why, despite the setback, it will simply be pivoting its efforts to create something new. However, these original video pieces have been around for at least a year in some capacity or another, so it will be interesting to see what Spotify can do to change things up. And if it can have any impact down the road.
Meanwhile, Apple, one of the biggest competitors to Spotify in the music streaming environment, is moving forward with its own video content in big ways. The latest report suggested that Apple won’t even be putting that content behind the Apple Music paywall anymore, either, which should open doors quite a bit.[via Bloomberg]