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Spotify Execs Bet People Will Pay for AI Music. Stock Price Plunges
Gizmodo • • business
Key Points:
- Spotify reported reaching 777 million total users and 300 million paid premium subscribers in the past quarter, alongside increased expenses driven by AI investments.
- The company is heavily investing in AI-driven features, including a new "Talk to Spotify" chatbot for Premium users and a partnership with Universal Music Group to enable AI-generated remixes and covers by real artists.
- Spotify emphasizes a responsible approach to AI music, focusing on artist consent, credit, and compensation, aiming to create legal and artist-friendly AI music tools.
- The AI-generated music feature is planned as a paid add-on but will first launch as a "research preview" without a specific timeline.
- Despite growth efforts, Spotify is introducing more ads and limitations in its free tier to encourage paid subscriptions, while its stock price fell 8% at market close.
