In its first quarter earnings call, streaming music service Spotify discussed how the advancement of Artificial Intelligence (AI) is impacting its business. The company was proud to present their new AI DJ feature, which allows users to access personalized music selections introduced by a realistic-sounding DJ voice.
Unfortunately, AI also brings with it the potential for harm. Recently, a song that used AI to clone the voices of Drake and The Weeknd was uploaded to a number of streaming services, prompting a copyright debate between major players like Universal Music Group and stakeholders in the music industry. During the Q1 2023 investor call, Spotify CEO Daniel Ek offered his position on the issue.
Ek stated the issues surrounding AI are complex and fast-moving, so there is not a single answer. He said it is Spotify’s responsibility to balance both allowing innovation and protecting existing creators and artists. When asked about AI progress and it’s potential impact on the business, Ek described it as “really cool and scary” and said there is a risk to the wider ecosystem.
Spotify is also benefiting from the use of AI in other areas, such as their new feature AI DJ, which has now reached millions of active users per week. Ek also envisioned a future where artists can instruct AI to make songs sound “more upbeat” or “add congas to the mix” without needing to understand complicated music production tools.
Overall, Spotify reported a 14% increase in its Q1 revenue, totaling €3.04 billion and a 17% increase in ad revenue to €329 million. Additionally, the company has also reached a milestone of 500 million users, but the portion of premium subscribers fell to a ratio of 40% paid-to-free listeners, with 210 million on the premium plan, while 317 million were on the ad-supported version.
Spotify is a leading audio streaming service that focuses on providing a personalized music experience for its users. It allows them to access over 50 million songs and podcasts through its free and premium membership tiers. Founded in 2006, it’s now available in 93 markets and its platform reaches over 345 million active users monthly.
Daniel Ek is the Co-founder and CEO of Spotify, which he founded back in 2006. Since then, he has focused on making Spotify the world’s leading music streaking service, leveraging its various features and acquiring different companies to become a household name. Currently, Ek is working on introducing newer features that will help improve the music streaming experience for its users.
