updated 03:20 pm EDT, Mon March 25, 2013
Sources point to new video offering
Spotify is reportedly preparing to launch a streaming video service that may rival Netflix and other established players, unnamed sources have told Business Insider. The unconfirmed report suggests the company is already attempting to find partners that will help produce exclusive content, following a strategy already employed by Hulu and Netflix.
The rumors have fueled speculation that Spotify is looking for new ways to establish control over the terms of licensing deals with content owners. Exclusive content is a clear departure from third-party licensing, though it remains unclear if streaming service providers will achieve success with such business models.
Netflix' original series "House of Cards" premiered just last month, with an estimated production cost of at least $4.5 million per episode, though the company has yet to disclose any details surrounding initial viewership. Amazon is working on its own original content, while rumors suggest Microsoft may be following suit.
Despite the Spotify report, CEO Daniel Elk recently told CNET the company is "all focused on music" in the near term. "I won't rule it out because we're a company that looks at what we're doing incredibly long term," he added.