Spotify Is Said to Cancel TV Shows in Reboot of Video Efforts
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Spotify is planning to reboot its video strategy for at least the third time in as many years as the world’s largest online music service searches for ways to make money that don’t involve recorded music and costly royalties, people with knowledge of the matter said.
The company is canceling original video series on the service, as well as shows it hasn’t released, said the people, who asked not to be identified discussing internal deliberations. Courtney Holt, the newly installed head of video and podcasts, is exploring the creation of a new format unique to Spotify, they said.
While Spotify is first and foremost a music service, the Swedish company has been looking for other ways to entertain users and generate advertising sales without incurring the same royalty and distribution costs expenses that exceed 80 percent of revenue. More than half of Spotify’s customers use the free, advertising-supported service, but ads account for just 10 percent of revenue.
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