Spotify is reportedly in talks with US cable firm HBO to offering TV programmes in Scandinavian countries, suggesting that the firm is planning to evolve its music streaming service to include online video. According to Danish tech site Beep, which is owned by local broadcaster TV2, Spotify is in negotiations to stream content from HBO’s new Nordic channel in Sweden, Denmark, Finland and Norway. Spotify is not denying the rumours outright, which are just the latest to emerge over Spotify’s potential to evolve its music streaming service to include TV, while HBO Nordic is yet to comment. The speculation follows reports that the firm’s losses continue to mount as it attempts to mature its long-term business model and hit profitability.
“We're not commenting on this story at all. We never comment on rumour and speculation,” a Spotify spokesperson tells StrategyEye.
Commentators are sceptical about the rumours, with Spotify’s website and mobile apps currently not geared to stream video content. It also seems unlikely that Spotify could afford to pay for expensive TV licences as the costs from its music streaming service continue to mount. After an aggressive international expansion programme and costly marketing campaign, Spotify saw it’s income go further into the red. Although the firm generates a healthy sum selling monthly subscriptions, pulling in gross profits of USD76m last year, it is still spending almost the same sum offering free music as a marketing tool to get users hooked on the service and then convert them to paying members.