Could Spotify kill YouTube?
Google and Facebook are at war to win our attention. Video is fast becoming the preferred form of media consumption and video advertising is the highest yielding format due to superior storytelling ability.
One of the most important aspects of a video is the music that goes with it. Just think of all those football videos with the Titanic song playing over it — like the one below:
Because the embedded video is hosted on YouTube, the creator/owner (in this case Itsbazza) cannot make any money from it a) because they probably don’t own the footage b) because they definitely don’t own the music rights. Therefore, they don’t get a share of any advertising revenue and YouTube are limited in monetising that content due to rights issues.
Spotify has the music rights to most songs. They have very recently added “videos” to their menu which is a big step as previously video was a hidden section under Genres & Mood. It demonstrates that Spotify are bringing video out of the dark and it is seemingly inevitable that Spotify will soon roll out their own video platform.
No doubt they are tracking how many users visit that section so they can build a better business case for acquiring content and building a tech stack to support video uploading, playing and monetisation.
The key will be in organising the music rights on videos. This will allow content creators/owners (like Itsbazza) to make better content with better music and generate revenue from it.
In March, I wrote a post responding to Spotify acquiring a video recommendation startup — MightyTV.
They have also acquired Mediachain — a startup that uses blockchain technology and a cryptocurrency to reward creators for their work. The perfect stack for organising rights management for music used in videos.
It will take time for Spotify to build up the amount of content that YouTube has, but I expect it to be more premium content and less cat videos.
In terms of revenue generation, users will be given the choice to opt-in for video on Spotify for an extra $5/month.
If this starts to build momentum, there could even be an offer from Google to acquire Spotify, take on Apple Music, integrate music rights into YouTube and monopolise even more of our attention!!
I am a tech entrepreneur and Founder of Suggestv. I am passionate about video and the impact intelligent recommendation technology will have on the way we consume content.