Spotify has announced it is adding more non-music content to its app.
The new offerings include news bulletins from National Public Radio, the BBC and others as well as longer video and audio podcasts and clips.
Spotify
has more than 60 million regular users across 58 countries. It says
about 20% pay for its premium ad-free subscription services.
Chief executive Daniel Ek said that represents more than half of the global market in "streaming dollars".
The
company said it had also taken steps to match the music tracks it
suggests to the various activities users engage in throughout their day.
This
includes a new running mode, which matches music to the pace of the
subscriber based on feedback from their smartphone's built-in sensors.
The firm said it had also created a new type of audio format that
allows a song's tempo to be altered to match a runner's footsteps while
keeping it in tune.
And it has commissioned new track from
composers and DJs including Tiesto, who made a brief appearance at the
firm's New York press conference.
"If it works, the ability of
Spotify to adapt what it plays you as the day progresses is
interesting," commented Andy Malt, editor of the music business news
service Complete Music Update.
"Being faced with a choice of tens
of millions of tracks is daunting for a lot of users when they open the
app, and while that catalogue is a big sell for the engaged music fans
who were streaming's early adopters, it's less appealing to mainstream
users.
"The less users have to interact the more music the app
can serve up to them. Adding non-music content, including podcasts and
video, also has the potential to keep users within the Spotify app for
longer."
One of the new pieces of audio content is BBC Minute - an
"alternative" round-the-clock news service, aimed at a youth audience,
already offered to other digital platforms.
Launched in April, it is a 60 second conversation of shareable news, updated every half hour.
In
addition, for a year-long period, overseas Spotify users will be able
to listen to around 50 speech-only podcasts from BBC stations.
"These
programmes are already freely available in the UK, so we're running
this trial only for overseas users," the corporation said in a
statement.
"This means we can generate income for the BBC to
reinvest in programmes for licence fee payers as well as reaching new
audiences across the globe."
Disney, the sports network ESPN, the
science-tech talks organiser TED, Conde Nast Entertainment and the US TV
channels MTV and NBC are among those who have also committed to
providing material.
Spotify said it would suggest video and audio shows to users based on their past use.
The
announcement comes less than three weeks before Apple's developers
conference, when the iPhone-maker is expected to reveal plans for a
streaming music service based on its takeover of Beats Music.
Spotify
is also facing new competition from Tidal, a music service relaunched
by the musician Jay Z and backed by other famous stars. Jay Z said last
month that it had signed up 770,000 subscribers.
The new services
are initially restricted to iPhone users in the US, UK, Germany and
Sweden, but will later be extended to other platforms and countries.
Streaming may well be the future of music and Spotify may be the
future of streaming, as Daniel Ek claims, but the Swedish chief
executive faces a twin threat.
Apple is about to launch its own
music service and will be determined to win back customers lost to
Spotify as downloads have stagnated.
And the music labels, which
have absolute power over the streaming company, have been flexing their
muscles, making it clear they could withdraw their artists.
So,
by offering a new service which is about more than music Spotify hopes
to take on Apple by winning over the kind of music fans who also like to
snack on YouTube videos or catch up with podcasts.
Meanwhile, it will be able to show the music labels that it has other options.
But
make no mistake, the stakes are high - if customers don't take to the
new Spotify, plans for a stockmarket float will go on hold, perhaps
forever.
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