Daniel Ek, the CEO of Spotify, teased a few potential uses for expanded AI-powered functionality during the streaming service’s second-quarter results call this morning. Ek touched on how AI could be used to generate ads, summarize podcasts, and create more personalized experiences.
The company launched a DJ tool earlier this year that offers a hand-picked playlist coupled with spoken commentary driven by AI about the tracks and artists you enjoy. Ek says that in the future, users may anticipate similar AI-powered features aimed at contextualizing and personalizing content across the streaming service.
As reported by TechCrunch, Elk called DJ “a phenomenal product” during the call and said that it “talks about the ability for us to contextualize and personalize all the amazing content that we have on the Spotify platform. So I think you’re going to see a lot more of that where we can contextualize and personalize content across the entire platform to make it more accessible”.
Given that it might be difficult to get into new podcasts, Spotify may employ generative AI to use it to summarise the content of podcasts. According to Ek, doing so could make it easier to market new podcasts to consumers, which would increase engagement and promote creator growth.
Ek says that AI-generated audio ads are yet another way that Spotify might benefit from AI technology.
Patent Application Reveals Spotify’s Text-to-Speech Synthesis Plans
Ek’s comments line up with Spotify’s recently published patent application for a “text-to-speech synthesis” technology that uses artificial intelligence. Text converts into speech that sounds human-like and has emotions, intentions, accents, and a range of tones. This system expands Spotify’s DJ feature and makes narrating audiobooks and other applications possible.
A notable example of Spotify’s significant investment in AI voice technology is its acquisition of the London-based startup Sonantic last year. Spotify’s AI DJ feature, which offers human voices that sound realistically like text, is powered by Sonantic’s AI engine.
Growth and Revenue Figures
Spotify reported a 17% rise in subscriptions worldwide as well as 220 million paid customers in terms of growth and revenue. There are now 551 million active monthly users on the platform. While the most recent quarter’s revenue increased by 11% year over year to €3.2 billion ($3.5 billion), Spotify also reported an operating loss of €247 million ($274 million).
Price Hike for Premium Plans
Spotify announced a price increase for its premium plans to compensate for increased costs. Individual subscriptions will now cost $10.99 per month instead of $9.99, and similar price hikes will be made to the duo and family plans.
