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Gustav Soderstrom introduces the new features at an event in New YorkBryan Bedder\/Getty Images for Spotify<\/p>\nThe world\u2019s largest music streaming platform is targeting high-spending \u201csuper-users\u201d with a suite of new products, including a tool that will allow subscribers to legally remix tracks using artificial intelligence.\u00a0<\/p>\n
Spotify agreed a licensing deal with Universal Music that will enable premium users to create remixes and covers of existing songs using AI. The tool will be offered as a paid add-on for existing Spotify Premium subscribers.<\/p>\n
Gustav Gyllenhammar, senior vice-president of markets and subscriptions at Spotify, told The Times that the new product, which will be released in the \u201cnear future\u201d, reflected a shift from \u201cpersonalisation to generation\u201d that was occurring across different forms of media.\u00a0<\/p>\n
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Gyllenhammar said the company\u2019s unparalleled access to user data gave it an advantage in establishing a \u201clarge taste model\u201d that could create a more interactive experience for users. \u201cOur ability to use our proprietary and licence data, combined with the signals that we\u2019re getting from users, means that we can build ground-breaking new AI-based products across the board,\u201d he said.\u00a0<\/p>\n
The music industry has faced challenges in recent years, with remixes going viral on short-form video platforms such as TikTok without generating royalties for the original artists or labels. These problems have only intensified with the rise of AI. <\/p>\n
Sir Lucian Grainge, chair and chief executive of Universal, said: \u201cThis initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem.\u201d<\/p>\n
Gustav Soderstrom introduces the new features at an event in New YorkBryan Bedder\/Getty Images for Spotify<\/p>\n
The new product was announced at Spotify\u2019s investor day, the first since 2022. The presentation marked a crucial test for co-chief executives Alex Norstrom and Gustav Soderstrom, the streamer\u2019s new management team after founder Daniel Ek transitioned to become executive chair at the start of the year.\u00a0<\/p>\n
Although Spotify became profitable in 2024, Norstrom and Soderstrom are under pressure to show how the company can drive growth over the coming years. Spotify faces increasing competition pressures from other streaming platforms, such as Apple Music and Amazon Music, as well as short-form video content.\u00a0<\/p>\n
The company is targeting $100 billion in revenue by the end of the decade, as well as 1 billion global subscribers. Securing greater revenue from super-users is a key part of the company\u2019s plan to meet those targets. \u201cWe have super-users across music, podcasts and audiobooks who are willing to pay extra,\u201d Gyllenhammar said.\u00a0<\/p>\n
Alongside the remixing tool, Spotify announced \u201cReserved\u201d, a new ticketing initiative that will automatically hold two concert tickets for an artist\u2019s most dedicated subscribers. The company also announced add-on tiers for audiobook listeners and \u201cpersonal podcasts\u201d, which enable users to generate customised audio content by entering prompts.\u00a0<\/p>\n
While the core premium subscription remains the company\u2019s main runway for growth, the company intends to layer these new, high-margin AI features on top of standard accounts to extract more value from their most loyal listeners.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The world\u2019s largest music streaming platform is targeting high-spending \u201csuper-users\u201d with a suite of new products, including a…\n","protected":false},"author":2,"featured_media":603700,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":["post-603699","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/603699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=603699"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/603699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/603700"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=603699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=603699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=603699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}