Spotify is said to be entering the video streaming service arena, which will put it head-to-head with Netflix – all in the hopes of someday becoming something as big as HBO.

Spotify is a cloud music service that lets people listen to the tunes they want, when they want it, for a fee or with ad-laced experience.

Though Spotify dreams big, it has yet to fully revolutionize the music industry.  It aimed to make labels dependent on the service, but Spotify is more dependent on record labels, not the other way around.  Record labels earn more since Spotify pays up every time someone listen to their songs using the music cloud service.  Striving for Apple-level influence, Spotify hoped that one day licensing deals could be cut with record labels to lessen costs.

But the iTunes generation has seen several offerings crowd the space.  And as Spotify recognizes the potential of Consumer Cloud Services, it may be eyeing another sector beyond music: video streaming.

According to sources familiar with the matter, Spotify is looking into offering video streaming in addition to music services, to entice more people to subscribe to the service.  But unlike Netflix and Hulu which started by offering content made by others then eventually producing their own original series, Spotify is looking for partners that would help them deliver exclusive, original content to subscribers.

The focus on original content springs from HBO’s success.  Before, HBO was just a cable company that shows movies from various studios.  Then it started creating its own original content, much of which has received multiple accolades as more people started subscribing to HBO and staying because of the original content it creates.  Though Netflix and Hulu are still new to the original content creation and delivery, their efforts are paying off.

So what does Spotify need in order to compete with the likes of Netflix, Hulu and HBO?

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3 Content Solutions for Spotify Streaming Video

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Original Content

If Spotify wants to create a huge splash immediately, original exclusive content may be the best route.  First off, people will be curious as to what it has to offer since its known for being a music streaming service.  People would be dying to find out what it would be about.  Would it’s first offering be about music?  Or would it follow the zombie-craze?

Exclusive content

Let’s be honest, creating original content costs a lot of money.  So even if it’s the best way to get new subscribers and have people stay, it might cause more problems for the company.  The best way is to find a partner that would deliver exclusive content without breaking Spotify’s bank.

Or Spotify could go the Microsoft route and target indie filmmakers.  Indie filmmakers don’t usually ask for a high price for their films, unless it already received international recognition and a lot of awards, but budding filmmakers are easier to deal with.  It could even try partnering with AMC so it can offer The Walking Dead, Mad Men, and Breaking Bad to Spotify subscribers.  Fans of AMC’s shows are still trying to figure out the best place to keep up to date with their favorite AMC show without turning to piracy.

Bundle

Spotify currently has three subscription options for music streaming: the free version which is full of ads, an unlimited version which costs $4.99 per month, and the premium version which comes in at $9.99 per month.   On the streaming video side, Netflix offers its service for $7.99 a month, or $79 per year.  It is expected that Spotify would price the video streaming service about the same.  Spotify could offer the same price, $7.99 per month or $79 per year for the unlimited music and video streaming subscription and $9.99 for the premium music and the video streaming subscription.