Videos are Going to Save Music Streaming
MTV is about to become a thing of the past as music videos are about to get even more popular than before. Except this time around, they will be everywhere you turn. Last week, there had been rumors that it was in Spotify’s plans to introduce videos as part of its streaming service in as it had partnered with a number of notable media companies. At first, the move seemed rather strange because, after all, Spotify is an audio music streaming service. But with difficulty in earning profits and growing operating losses, it definitely needs a new source of revenue and this is where videos can help.
Top dollar is demanded for ads that are played before and after a video. Unlike when people are listening to music, they aren’t doing anything when they are about to watch the video so they pay attention to ads. The CEO of music startup Vadio, Bryce Clemmer said that streaming platforms are passive as people can forget about them for long periods of time. He said that other music streaming services would also board the video bandwagon because they are struggling whereas the video industry is thriving. Just today, Vadio made the announcement of a $7.5 million Series A funding round for delivering music videos to platforms such as Pandora, Spotify, iHeart Radio and other digital music platforms.
Vadio's technology is used by streaming services for accessing its partner Vevo's huge database of music videos and they are incorporated into channels and playlists on mobile apps and the web. The former president of Sony Pictures Digital Entertainment, Yair Landau, who is now COO at Vadio said that moving pictures offer a better way to communicate with people who may be consuming music, but they would definitely prefer videos.
In the past few years, there has been a dramatic rise in the viewership of music videos online in the US, as per Vadio. The primary place where people get their fix is YouTube. Vadio is hoping to reduce this dependence by allowing users to access music videos through radio stream directly from the music platform of their choice. Clemmer has said that for streaming services, turning their listeners into video viewers can open up a new path to profits. There are problems in monetizing streaming and video is the best way to combat it. Users don’t look at their phones or TVs much when they are listening to music on their streaming service.
However, with videos, this can be changed because viewers will have a reason to stare at the screen. Clemmer claims that user behavior can be changed by introducing videos and this will keep them engaged in the app for long. Also, even if users aren't willing to watch videos all the time, they will still have this option at their disposal whenever the mood strikes. Clemmer says that there is no reason to restrict our phones, laptops and tablets to just audio because they have screens and can be used for watching videos too.