Spotify is once again rebooting its video strategy. This is at least the third time the company has switched up its formula as it searches for ways to make money outside of recorded music and royalties, people familiar with the matter told Bloomberg. More than half of Spotify’s customers use the free, advertising-supported service, but ads account for only 10 percent of sales.
Soptify plans to cancel all original video series on the service, as well as shows it has yet to release, according to the sources, who asked not to be identified discussing internal deliberations. Courtney Holt — the newly installed head of video and podcasts — is attempting to create a new format that is unique to Spotify. The format, code named Spotlight, will combine audio, images, and video, sources told Bloomberg. However, it’s still unclear how much of an investment Spotify is willing to make in the new format.