Continuing the fusion of TV and internet-based media, the Wall Street Journal reported yesterday that Spotify has inked a deal with Samsung that will bring its streaming music service to living rooms by way of Samsung’s Smart TVs. The deal allows owners of select Samsung home theater equipment to access Spotify, but there is a catch: the company will be offering its pay-to-play service only.
Spotify’s free service is backed by advertising dollars, which have been flowing slower of-late, and with a younger generation not really accustomed to paying for its music, persuading users to fork over monthly fees can be a difficult task.
Thus, the deal came about through a fortuitous convergence of interests, as Samsung had been looking to add entertainment options to its TV’s, and Spotify had been looking for bolster sales of its paid streaming service.
Samsung has already released Spotify-equipped televisions across a swath of Europe that includes France, Germany, and the U.K., no word yet on when, or if, the companies will release the service globally.
For Spotify, this foray into smart televisions is a first, but not an exclusive, as the company retains the ability to shop its services to other home-media outfits.
The agreement represents yet another expansion opportunity for a company that has been growing exponentially of-late. Last year, its revenue jumped up to $243 million, from $95 million the previous year, and its subscription service netted $203 million in sales, up from $67 million in 2010.
Whether or not streaming music will be a selling point for Samsung remains to be seen, but we are certainly seeing a great deal of internet-based media integrating its way into our home-theaters – the more the merrier.