On Monday over at Business Insider, two anonymous sources tell the publication that Spotify is considering diversifying into video content.
According to the post, “Spotify intends to become an on-demand music and video service — one that would invest in original content and compete heads-on with Netflix.”
Now this is certainly interesting and entirely plausible in my opinion, even if CNET seemed to throw water on the idea with a previously obtained quote from Spotify CEO Daniel Ek. “I won’t rule it out because we’re a company that looks at what we’re doing incredibly long term,” Ek said in a recent interview with CNET. “But right now, we’re all focused on music.”
Now, whether Ek is playing coy so as not to reveal the company’s true plans or he’s being completely up front about the timeline, I do think we will begin to see lateral moves among specialist aggregators into new markets. After all, the hardest challenge in digital markets is acquiring a mass of users, and once you have that it makes sense to leverage infrastructure investment and digital delivery know-how to move into new markets.
Call it the Apple rule. Wait, make that the Amazon rule. Or is it the Xbox rule?
Either way, all of these giants showed that once they made a name for themselves in one market, it makes sense to broaden their scope and expand into new markets.
If that doesn’t convince you, consider this: According to Roku CEO Anthony Wood, the third most popular app on Roku — a video player — is Pandora. Oh, and I know all music apps aren’t the same, but now that Spotify is finally on Roku and has been one of the most requested new apps for the device, it’s not much of a stretch to guess it will perform well on the connected TV streamer as well.
Bottom line here? Screens are becoming multicontent consumption devices, and over time those aggregators with large user bases will look to expand into lateral markets to increase their total available market.
So, Spotify Video? Why not. And while we’re at it, how about Netflix music or Pandora TV?