Spotify to Enter the Streaming Video Market

There are many companies trying to compete in the streaming music category, such as Spotify, Rdio and Rhapsody. The same goes for streaming video, where Netflix, Hulu Plus and Amazon Prime are battling it out. But there has yet to be a service that combines the two, and in that, Spotify has spotted an opportunity. According to sources for Business Insider, Spotify plans to become a destination for both streaming music and video, and hopes to produce original content on the level of Netflix’s “House of Cards.”

It’s an interesting proposition. Spotify has become very popular since its launch in the U.S., due largely in part to its freemium account option and built-in social features like its real-time ticker and shared playlists. Those who pay a separate subscription fee to a service like Netflix might like the idea of consolidating their streaming media habits into one price through one service, but only if Spotify is able to offer a similarly-sized content library and quality original programming.

The social aspect is an area where Spotify might have an advantage. While Netflix and other streaming video companies are starting to build social features into their products now that it isn’t against the law, Spotify already has such a system in place. Imagine watching TV episodes or movies and having those titles shared through the Spotify ticker, or imagine putting together a playlist of your favorite TV shows or films.

Spotify’s current system could be tweaked to work for video and provide an experience similar to the current music product. It could wind up being one of the best services for new video discovery if Spotify plays its cards right.

Of course, gaining access to media isn’t cheap. Spotify knows this already, as the company pays a pretty penny for the rights to stream its large catalog of songs. Obtaining video rights to build up a catalog will require some serious funding, as will creating original content. Word is that Spotify is searching for partners to help fund its original content. Should interest in being a part of Spotify’s expansion allow for it, a new investment round could be on the horizon.

Spotify isn’t commenting on this information at the moment, but we’ll certainly keep you updated if we hear anything more. In the meantime, we’d love to know what you think. Is a Spotify video product something you’d be interested in? Leave your thoughts below.