(San Francisco) Spotify on Wednesday introduced new tools for artists and authors, with a special focus on video formats – which are also becoming increasingly important for an audio service – and on generating additional revenue.
Posted at 3:11pm
Launched in 2006, the platform has quickly become the number one audio streaming provider in the world, but it still needs to prove the viability of its business model, whether for itself or for artists.
During a live streaming marketing event, it announced that it recently surpassed 500 million monthly active users, including 205 million paid subscribers (by the end of 2022). It also has 10 million creators.
“When we started Spotify, the music industry was in freefall. So everyone was wondering if it was doomed or if it could be reinvented so that talented artists around the world could make a career out of it and make a living from it,” said Daniel Ek, founder of the Swedish tech flagship.
“Today we know the answer is yes,” said the chairman, who has just stepped down to hand over day-to-day operations to two new co-chairs: Alex Norstrom and Gustav Söderstrom.
Spotify wants to make it easier for artists to sell merchandise and tickets to concerts and other live events.
They can also add 30-second videos to their profile and album page to compete with music videos on social media, which “doesn’t guarantee the public will then hear the whole song,” explained Sulinna Ong, a Spotify executive.
Podcasts are also becoming more visual and interactive, with more “video podcasts” and the ability to organize “questions and answers.”
On the user side, the interface is being modernized with the ability to listen to “previews”, a new search tab, and increasingly personalized recommendations thanks to artificial intelligence – hoping to push them to discover more creators.
“The number of artists making over $1 million, as well as those making over $10,000, has more than doubled in the past five years,” the company said in a statement.
“The issue of artists’ remuneration and income is an issue on which we are regularly challenged and it is normal,” reminded AFP Antoine Monin, director France and Benelux of Spotify.
Spotify, which has been consistently loss-making for several years (€430 million in 2022), recently announced a plan to shed nearly 6% of its workforce.