Spotify Technology SA
What Happened: Spotify's latest beta version is currently being rolled out in a limited manner and includes a limited catalog of music videos from global artists such as Ed Sheeran, Doja Cat, Ice Spice, and local favorites like Aluna and Asake.
Charlie Hellman, Vice President and Head of Music Products at Spotify, stated, "Music videos play a key role in hooking you: taking you from being a listener to leaning in and becoming a fan."
It's worth noting that Spotify's rival YouTube Music already supports music videos - users can choose to listen only to the music or flip a switch to watch videos as well.
Spotify has utilized features like Canvas, Clips, Artist Bios, Live Events, and Merch to foster meaningful connections between artists and listeners. The company noted that Canvas visuals have particularly driven user engagement.
As part of the beta launch, Spotify plans to continue innovating and iterating based on user and artist feedback. The company expressed its intention to expand the music video catalog and bring the feature to more users and countries.
Why It Matters: This move comes on the heels of Spotify's decision to raise its subscription fees in France in response to a new tax targeting music-streaming services. The tax, which took effect on January 1, aims to support the national music sector.
Earlier in the month, Spotify bagged a major win against Apple Inc.
The fine was imposed to prevent Spotify and other music streaming services from informing users about payment options outside its App Store.
Price Action: Spotify's shares closed 0.18% lower on Tuesday at $257.62, according to Benzinga Pro.
