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Spotify launched a new video streaming service on Wednesday in partnership with Comedy Central, Vice News, ABC, and ESPN, to name a few. Currently, the service seems to offer mostly video clips, but Spotify CEO Daniel Ek said more original content is coming.
It's easy to see why Spotify is moving into video. According to data from GlobalWebIndex, charted for us by BI Intelligence, 87% of Spotify users watched a video clip online, while 70% of its users watched TV on demand in the past month. More than 60% of its users streamed a full-length show live over the web in a given month, while a third of Spotify users are currently paying for a TV or a film streaming service each month.
This move will also help Spotify generate more ad revenue, as video ads are much more lucrative than streaming audio ads. According to BI Intelligence, video ads are expected to be the fastest growing digital ad category, reaching more than $4.4 billion in revenue by 2018.
BI Intelligence