Spotify’s Chief Financial Officer, Paul Vogel, spoke at an investor conference and highlighted the success of the company’s AI DJ, an artificial intelligence-driven personalized guide. He mentioned that AI DJ has been well-received in 50 countries and praised its positive reviews. Vogel emphasized the company’s commitment to investing in innovative services that consumers and artists love.
Vogel also discussed Spotify’s user growth in both developing and mature markets, attributing it to the combination of free and premium offerings. He noted that offering different tiers, including cheaper ad-supported options, has been successful for video streaming platforms.
Regarding Spotify’s foray into podcasting, Vogel stated that the company is the largest player in the podcasting market in many countries. He highlighted Spotify’s evolution in its podcasting strategy, focusing on growing podcast advertising in a thoughtful way and investing in profitable areas. The company aims to maintain its presence in podcasting while ensuring a balance between risk and reward.
Vogel admitted that Spotify has made some beneficial deals as well as some that didn’t work out as expected. He emphasized the importance of learning from past deals and structuring future deals more effectively to invest in the right content.
In terms of performance, Spotify experienced significant growth in the first half of 2023, with its stock price increasing over 100% compared to the end of 2022. The company reported reaching 551 million monthly active users and adding 10 million paid subscribers in the second quarter, surpassing its own guidance forecast. However, Spotify continues to incur operating losses as it focuses on profitability.
Overall, Spotify’s CFO expressed confidence in the company’s AI DJ and its success in podcasting. He emphasized the importance of strategic investments and learning from past experiences to drive continued growth and profitability.
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