Spotify will carry video content from Viacom and Disney
The video streaming market is becoming increasingly competitive. Previously in this series, we saw how YouTube, Google’s (GOOGL) video platform, plans to enhance its live video streaming service to compete with Amazon’s (AMZN) Twitch service. According to a May 20 press release from music streaming company Spotify, the company now plans to provide video content to its users.
Spotify enters crowded video streaming market
Investors value Spotify very highly. In early May, Spotify was reportedly gearing up for a new round of funding that would raise $400 million and boost its value to $8.4 billion. Spotify is also aggressively expanding its reach in a number of international markets. It recently entered Canada and has plans to enter Japan (EWJ).
The video streaming market is already a crowded space, which makes it a challenge for Spotify to penetrate that market. According to a report from Sandvine and as you can see in the above graph, Netflix (NFLX) accounted for 36.5% of downstream Internet traffic on computers and networks in North America in March 2015. You can read more about this in Market Realist’s article Netflix Continues to Lead the Share of Internet Traffic in the US.