Music-streaming service Spotify AB is entering the hotly
competitive Web-video business, announcing Wednesday that it has
added streaming video and podcasts to its offerings.
The Wall Street Journal reported on Spotify's video plans
earlier this month.
The closely held streaming service, which has shaken up the
recording industry over the past few years, said Wednesday that it
would offer news and clips from outlets like ABC, BBC, ESPN, NBC
and Comedy Central.
In addition, Spotify said it also is introducing original
content, such as "A Full English," a show that will feature artists
and other personalities who search for common ground over
breakfast.
The moves position Spotify to take on powerhouses like Google
Inc.'s YouTube and Facebook Inc. in a strategy that may put growth
ahead of profit.
The company also unveiled a running service that matches the
listener's tempo to a song.
Spotify has yet to turn a profit in the streaming-music
industry, where its rivals include Pandora Media Inc., Apple Inc.'s
Beats and rapper Jay Z's Tidal. Spotify said in January that it had
60 million users going into 2015, 15 million of which were paying
$9.99 a month for its ad-free premium service.
The video foray coincides with talks in which Spotify is seeking
to raise more than $400 million from investors in a round of
funding that would value the company at more than $8.4 billion, The
Wall Street Journal has reported, citing people familiar with the
matter.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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