Next Level AI Deep Dive: SPOT

Spotify (SPOT), a Sweden-based audio streaming and media company, provides a vast library of music, podcasts, and audiobooks. Recently they’ve announced a price increase for Premium subscribers and introduced a variety of new AI tools to enhance user experience. 

SPOT shares have traded +101% higher over the past year. 

Is this growth justified?

LikeFolio data says yes. Here's why...

Spotify leads the market with 31.7% of subscribers, making it the dominant player in the music streaming industry. This significant market share highlights Spotify's popularity and its strong position compared to other services like Apple Music (12.6%), Amazon Music (11.1%), and YouTube Music (9.7%). LikeFolio sees a mention buzz that shows Spotify domination. The platform accounts of 80% of consumer mindshare versus Apple Music.

Consumer searches for “Spotify plan” are increasing and outnumbering the search for “Cancel Spotify.” This is a signal that more consumers are becoming interested in a Spotify subscription than the number of consumers looking to cancel. This shift, along with Spotify’s majority share of the music subscription market, puts the company in a comfortable position to continue to expand its products.

The upward trend of “Spotify plan” as compared to “Cancel Spotify” shows a trend in favor of the continued growth in number of Spotify users. 

Other important highlights investors should know:

• Spotify continues to boost its AI investments to provide personalized song recommendations from its massive 100 million track library. The spending builds off the success of machine learning recommendation tools like Home feed, Blend, and Made for You Mixes that together more than doubled artist discoveries from 2018 to 2022.

• Last year Spotify launched an artificial intelligence DJ that helps premium subscribers discover new music that is outside of their comfort zone. They are reportedly experimenting with a Spanish-speaking AI DJ named DJ Livi that could mark the first step in language expansion.

• Spotify is developing a new AI Playlist tool that generates a soundtrack idea from a text prompt effectively knowing what users want to listen to even before they do. The feature is currently being beta tested in the UK and Australia.

We've got a close eye on web metrics from here for signs of slowing growth. For now it seems full steam ahead.