Spotify Plans Expansion Into Video Arena
May 8, 2015 at 4:01 AM (PT)
Streamcaster SPOTIFY is reportedly planning to expand its services to video offerings, taking on YOUTUBE and FACEBOOK.
THE WALL STREET JOURNAL reports, "SPOTIFY has approached so-called multichannel networks that specialize in creating and distributing video for YOUTUBE to discuss both acquiring their material and co-creating original video series, the people said. It also contacted some well-known traditional-media companies about potential alliances."
The company has the funds to do this, as ALL ACCESS reported earlier this week (NET NEWS 5/4) that SPOTIFY has raised about $350 million in a new round of fundraising. CNBC cited unnamed "people familiar with the matter" in reporting that the "first close" of the round took place last week, with GOLDMAN SACHS among the initial investors. SPOTIFY was already valued at $8 billion before the new fundraising, giving it a valuation twice that of PANDORA.