Spotify to Stream Videos

Spotify is expanding into video streaming. The music service announced Wednesday that it will start providing users with video content from artists, news outlets and TV networks within the near future. The service also plans on adding audio podcasts.

"There is a profound change happening in music we couldn't have foreseen," Spotify founder and Chief Executive Daniel Ek said.

Ek stated that the goal is to "soundtrack your entire life."

The company, based in Stockholm, stated that there will be a recommendation function that will allow subscribers to pick channels that are specific to their lifestyle activities. Spotify announced its partnerships with several organizations, such as BBC, Walt Disney Co.'s ABC, NBC, ESPN, TED, Slate, CBS Radio and Vice but will also develop original content and video.

During the announcement, which took place in New York and lasted one hour, Spotify did not disclose any information regarding revenue opportunities with their new partners. They did play clips from VICE News, Comedy Central's Broad City and the Nerdist.

"A digital video service from Spotify is a logical extension of the company's success in digital music streaming, since these are complementary businesses that use much of the same technology infrastructure, marketing expertise, and vendor relationships," Paul Verna, a senior analyst at eMarketer, said reported by USA Today. "Beyond these natural affinities, the move suggests that Spotify sees a business opportunity in digital video advertising, which is a much larger and faster-growing sector than Spotify's core business of digital music."

At the end of 2014, Spotify had 15 million subscribers and 60 million active users. The service's revenue mainly comes from its subscribers.