Spotify Technology is mulling adding full-length music videos to its app, which could help the popular music streaming platform compete with TikTok and Alphabet Inc’s (GOOGL.O) YouTube, Bloomberg News reported on Friday, citing people familiar with the matter. The company, which did not immediately respond to a Reuters request for comment, already allows artists to upload looping GIFs, which play when a music track is playing.
The feature, which Spotify describes as ‘album artwork for the streaming age,’ lets an artist add an 8-second visual loop to a song that will replace traditional album art when the song is played on the app’s Now Playing view. The audio from the track will not transfer over to the Canvas, which can be uploaded in either a vertical or horizontal format to match how the image will appear on a smartphone screen.
If the feature is rolled out widely, it will allow Spotify to showcase more of the music that makes up its massive catalog and attract Gen Z users away from short-form video platforms like TikTok and YouTube Music. It will also offer a new way to get users to pay for the premium version of its music-and-podcasts service, which costs $14.99 monthly and does not include advertisements.
Spotify’s library of songs totals over 80 million choices, though that number dwindles to 2 million options for the free tier. The streaming service’s catalog is rounded out by a massive selection of podcasts, including the Joe Rogan Experience and The Michelle Obama Podcast, and playlists such as Discover Weekly and RapCaviar that highlight fresh music. It also offers curated playlists, such as New Music Friday and All The Best, and has begun including music videos in some of its own-brand playlists.
In February 2021, Spotify added video podcasts to its offerings. It now has more than 100,000 podcasts with videos. It is vying to attract Gen Z audiences by offering them a music-and-videos option to rival the popularity of TikTok and other short-form video apps.
Unlike TikTok and YouTube, which make money from ads and other content on their platform, Spotify generates most of its revenue from subscriptions to its streaming service. Its pricing structure varies across markets, with some countries offering a discounted subscription tier for students or households with multiple members.
The company has been experimenting with ways to lure more subscribers with additional features and services, including the ability to follow friends’ listening habits and enhanced personalization of its app. Spotify management has reportedly been more focused on increasing consumer value than maximizing profits, even though the company could raise prices tomorrow if it wanted to. The strategy is paying off, as Spotify’s user base has grown steadily since it launched in 2008. In the third quarter of last year, the company had 96 million paid subscribers worldwide, up from 56 million at the end of 2016. Spotify’s advertising business also has been a bright spot in recent years.
