LONDON (Hypebot) –
With an Apple music relaunch right around the corner, Spotify has been busy shoring up $400 million in new funding, deep discounting paid subscriptions and now, according to multiple reports, plotting the addition of video content.
Spotify revenue jumped 45% last year to $1.1 billion according to new financial reports obtained by Reuters. But operating losses also widened to $185 million USD, compared with a loss of $102 million last year. The company says product development and international expansion caused the revenue gap.
Spotify Press Event May 20
Yesterday, as Spotify sent invitations to a May 20th press event in New York City, multiple reports surfaced that the company has been in talks with a wide variety on video and media companies about bringing their content onto the Spotify platform.
MTV, Comedy Central, Time Inc., Tastemade, Maker Studios, Fullscreen and Vice are among the companies that have been approached, according to the Wall Street Journal and New York Times. Some have been offered multi-million advances versus a share of future ad revenue,
Why Video On Spotify?
Spotify has two motivations:
1) longer user engagement means more ad revenue.
2) making a splash prior to the launch of Apple's revamped music service