published by Indigo Productions


Video Streaming Services, Welcome Your New Competitor: Spotify!

Spotify is an established music sharing website. It’s become one of the most recognizable music streaming services, mainly thanks to their masterful integration with Facebook. Also, Spotify provides Digital Rights Management (DRM) protection service for the music that it hosts. Spotify is a major provider of content from a range of established, as well as smaller, independent record labels, such as Sony, EMI, Warner Music Group and Universal – to name just a few.

Little birds just told us that Spotify is now looking into providing video streaming – not the type of video streaming services that we provide here at Indigo Productions, more of Netflix-type service that is – to complement their current content.

So, what can Spotify bring to the table that isn’t already there? After all, there are many well-established websites that let us watch full movies and our favorite soap operas. Netflix, Hulu, Redbox Instant, among others, have already offered this service and, may we add, ran into some not so-small problems along the way (think Netflix and their miscalculation of profit margins).

Can Spotify get their foot in the door? One would be tempted to say no, because there is not much that they can add to this niche but we beg to differ. Spotify will be able to learn from mistakes (and successes) of those who came before, so they’ll be able to shoot for the right thing in the first place. This is an interesting phenomenon from the IT world where being first is a detriment while being second is a competitive advantage. Want examples? Think of the first major search engine – Alta Vista – or even before that IBM and their operating system. They broke the ground but then came Microsoft and took over.

If the guys at Spotify play it right, they will enter the market with a huge competitive advantage – their experience and established infrastructure used to integrate their service with social media, which creates a sort of viral marketing campaign. The ebst example is their Facebook App – not only does it allow people to use Spotify through their favorite social media website, it also takes advantage of the users’ activity and posts an update to their status/wall that lets all of the persons friends know that they use Spotify and link to the song currently being played as in example below:

Spotify Facebook Integration

Spotify Facebook Integration

Last but not least, Spotify managed their brand placement perfectly. They come through as a cool and modern service, which combined with their devoted users can just be the Ace up their sleeve that might help them enter the market and beat the giants like Hulu and Netflix.

Will they? Time will tell but we at Indigo productions are rooting for Spotify (woohoo)!

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Category: Video Streaming

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