The 21st century ushered in an era of breakthrough technological revolution. Whether it’s the internet, cloud technology, or smartphones, technology has touched nearly every aspect of our life and has revolutionized businesses not imaginable before. One such evolving technology of the present millennium is Video on Demand (VOD) that allows you to access streaming video files on web browsers.
Spotify and Vadio announced video services
If you are into music, you would be glad to hear that Spotify is expected to announce a video offering at a May 20 event, which is this week. The popular online music streaming service provider plans to incorporate videos into its streaming music service in collaboration with major media companies.
The online music streaming company provides digital content from renowned record labels including Sony, EMI, Universal, and Warner Music Group. The recent move to incorporate video streaming service follows after the company experienced growing operating losses. As a result, it needed a new source of revenue and the company believes online video streaming service can help it to boost its revenues and improve its bottom line.
Spotify seems to be not the only music streaming company to jump into online video technology. The whole music streaming industry that is suffering from record low revenues is looking to incorporate video streaming into its services.
Bryce Clemmer, CEO of a music video stratup company Vadio, says that his company has secured a funding of about $7.5 million to deliver streaming videos to popular music streaming sites like iHeartRadio, Pandora and other digital music platforms. Music streaming sites can plug into Vadio’s video technology to access its partners Vevo’s massive library of music videos and incorporate them into their own channels or playlists in mobile apps.
Vadio’s current CEO, Yair Landua, who had formerly served as president of Sony Pictures Digital Video Entertainment said that videos are much better way to communicate. He said that right now people who listen to music would rather prefer watching videos.
Music Video Streaming Services Gaining Popularity in the U.S.
In the U.S., there has been a dramatic increase in popularity of music videos online services. At present, YouTube is the primary place for people to listen to their favorite videos. Vadio hopes to change all that by streaming videos directly on the consumer’s music platform of choice.
For music streaming service providers, this could be the long-sought alternative path to boost their revenues. Music streaming is generally better as compared to downloads and physical sales. Prominent record label companies, including Warner Music Group, report record revenues from music streaming as compared to paid downloads and physical sales. Recently, they claim that last quarter, streaming music revenue passed revenue from selling downloads which is a significant milestone.
By incorporating video streaming into their services, music streaming service providers see a great opportunity to boost their revenues and significantly improve their bottom line.