Viacom, Spotify Pool Resources
July 22, 2014 at 10:51 AM (PT)
VIACOM's music group -- consisting of MTV, VH1 and other cable channels -- is forming a marketing partnership with SPOTIFY, THE WALL STREET JOURNAL reports. They will offer users music by the featured artists on its websites at no cost, as well as highlight playlists related to productions such as MTV's "Teen Wolf," VH1's "Love and Hip Hop," CMT's "Party Down South" and the "MTV VIDEO MUSIC AWARDS."
At least 150 SPOTIFY playlists will be accessible free across VIACOM's network of sites at any given time. SPOTIFY will also promote the playlists to its 40 million users -- more than 10 million of which pay $10 a month for unlimited access to its 20 million-song catalog. SPOTIFY hopes the 60 million unique monthly visits to MTV's music platforms could help it sell more subscriptions. VIACOM undoubtedly believes the new deal will re-emphasize its musical roots to its current programming. "We can bring back the music in MTV and bring its programming to a wider audience again," SPOTIFY Founder/CEO DANIEL EK said.
Industry pundits believe SPOTIFY needed to expand its audience in the wake of GOOGLE and AMAZON's music streaming services, and APPLE's recent acquisition of BEATS MUSIC. Even though VIACOM remains a close partner with APPLE, EK remains confident that SPOTIFY, which has yet to turn a profit, can succeed in such a competitive terrain. Citing the success of upstarts such as note-taking app EVERNOTE and cloud storage firm DROPBOX. "The best product wins," he said.