Spotify is working on a video-streaming service that will complement its music platform as the battle for dominance in digital content hots up.

The privately owned Swedish group will announce the new service at a launch event in New York on May 20th, say people familiar with the matter. It will not be comparable to Netflix, Hulu or other video offerings but will support the company's core music service.

Spotify is the market leader in music streaming. Most of its 60 million subscribers use its free tier but 15 million pay for the service.

The company appears to be heading towards an initial public offering, having recently hired Goldman Sachs to raise $500 million, which would value it at more than $8 billion. – Copyright The Financial Times Limited 2015