Spotify coy on video streaming reports

A breaking report claims that music streaming service Spotify is set to start creating its own unique video content as a means of competing with services such as Netflix and as a way to gain more control of licensing deals with existing content providers.

The article, published on Monday by Business Insider, said that sources 'briefed on the company's plans' claimed Spotify wants to become a video and music on demand service and that the video in question would be original content, made in-house, putting it in direct competition with Amazon, Netflix and even HBO in the US.

However, speaking to CNET, the company's CEO, Daniel Ek, moved to quell the rumors and said that 'I won't rule it out because we're a company that looks at what we're doing incredibly long term, but right now, we're all focused on music.'

The music streaming service currently has 24 million active users and as such is the leading company in this growing field. In fact, the only company that pays record labels and rights holders more is Apple and Apple sells, rather than streams, music. In the same interview, Ek also ruled out streaming music videos, pointing to the dominance of YouTube and Vevo in this area.

Business Insider argues that Spotify's move to diversify its business is being motivated by the huge fees it has to pay rights holders. By producing its own content it could attract new, long-term subscribers to its services that would offset production costs, a move that has proven successful for cable channel HBO and a move that Netflix has also adopted this year with the premiere of 'House of Cards,' its first in-house production.