According to CNBC, Spotify announced on Tuesday it is making music videos available to premium subscribers in the U.S. and Canada, a direct challenge to YouTube. This follows a beta launch in nearly 100 markets last year, with the full rollout set for completion by the end of this month. The initial catalog includes artists like Ariana Grande and Olivia Dean. The company cites data showing tracks with videos see a 34% higher chance of a repeat stream and a 24% higher chance of being saved or shared. This news comes as CFO Christian Luiga emphasized the importance of engagement over raw user numbers, and as the Financial Times reported Spotify is expected to raise U.S. subscription prices in Q1 of next year. Founder-CEO Daniel Ek will also transition to executive chairman in January.
Spotify’s Video Gambit
Here’s the thing: this isn’t just about adding a nice feature. It’s a strategic land grab. For years, YouTube has been the de facto home for music videos, and that’s a massive piece of engagement Spotify has been missing. Think about it. How many times have you heard a song and immediately wanted to see the video? That’s a user journey that, until now, almost always ended up on YouTube. Spotify is trying to keep you inside its walled garden. And their own stats are telling—34% more repeat streams? That’s a powerful retention tool they simply couldn’t ignore.
The Bigger Picture and Price Hikes
But let’s connect the dots. This expansion isn’t happening in a vacuum. The company just raised prices in over 150 markets last quarter and is reportedly gearing up to do it again in the U.S. next year. Adding music videos is a classic “value-add” play to soften the blow of those impending price increases. They’re basically saying, “Hey, you’re paying more, but look at all this cool new stuff you get!” It’s a balancing act between driving profitability and maintaining subscriber growth. And with Daniel Ek moving to executive chairman, this feels like part of a broader strategic shift being locked in before a leadership change.
Can They Really Compete With YouTube?
Now, the billion-dollar question: can Spotify actually dent YouTube’s dominance? That’s a much taller order. YouTube is free, has an unimaginably vast catalog of official videos, live performances, lyric videos, and user-generated content. Spotify is starting with a curated list for paying subscribers only. So they’re not going for the same mass market, at least not yet. This feels more like an effort to deepen the loyalty of their existing premium base and make their service stickier. The real test will be how quickly they can expand that video library. If it remains a limited, niche feature, it won’t move the needle much. But if it becomes a core, fully-integrated part of the experience? Then we’ve got a real fight on our hands.
