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Report: Spotify Planning SVOD Site

25 Mar, 2013 By: Erik Gruenwedel

Music streaming site seeks to partner with content producers to launch original programming

Online music streaming service Spotify reportedly is planning to launch a subscription video-on-demand service that would include original programming.

London-based Spotify is a DRM-based music streaming service offering ad-supported and subscription access to selected music from major and independent record labels including Sony, EMI, Warner Music Group and Universal.

In addition to taking on Netflix, Amazon Prime Instant Video and Hulu Plus in the much-hyped video rental streaming market, Spotify is seeking to partner with content producers to create original programming, according to Business Insider, which cited sources familiar with the proceedings.

Original programming is strategy started by HBO, Showtime, AMC Networks and Starz, and recently emulated by Netflix with the bow of “Lilyhammer” last year and “House of Cards” in February.

The belief is that smart original programming will lure and retain subscribers. Indeed, HBO has become one of Time Warner’s most profitable divisions with 114 million subscribers globally thanks in part to original shows such as "The Sopranos," "Game of Thrones," and "True Blood.".

Privately-held Spotify has more than 10 million registered users, including more than 750,000 who pay for monthly access. It recently received significant funding from Coca-Cola and Goldman Sachs -- the latter valuing Spotify at $3 billion.

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