Spotify, the audio streaming giant, announced new features and tools aimed at boosting earnings and reach for artists and songwriters. The Swedish-owned company introduced video formats and personalised recommendations based on artificial intelligence (AI) as part of the revamp of its platform to offer a more interactive interface for users. At a live-streamed marketing event, Spotify revealed that it now has over 500 million monthly active users, including 205 million paying subscribers, and 10 million creators. Founder Daniel Ek expressed confidence that the music industry could still provide a sustainable career for talented artists around the world.
The new features will make it easier for artists to sell merchandise, concert tickets and promote their music on the platform. They can now add 30-second videos to their profiles and album pages, which can compete with videos posted on social media platforms such as Instagram and TikTok. The videos aim to capture a viewer’s attention and encourage them to listen to the full song. Spotify executive Sulinna Ong stated that the new tools are aimed at democratising access to marketing for artists.
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Spotify has been investing heavily in podcasts, audiobooks and live audio to expand its offerings beyond music in recent years. The company has been struggling to prove the viability of its business model despite being the world’s largest audio streaming service. Spotify posted a net loss of â‚¬430m in 2022, and has been posting losses annually, despite growing subscriber numbers and enjoying a lead over rivals such as Amazon Music and Apple Music.
The business anticipates that these additional features and tools will allow it to increase both its product offerings and revenue sources. By giving artists more ways to promote their music and sell merchandise and tickets, Spotify hopes to bring in more users and get people who are already using it more involved. Spotify continues to be a prominent player in the music streaming sector thanks to its sizable user base and cutting-edge features. The new resources will probably solidify its position as the industry pioneer in the field of audio streaming.