Spotify co-CEO Gustav Söderström highlights company's strategic investment in AI-driven music features and paid subscriptions.
Spotify co-CEO Gustav Söderström reported that the company reached 777 million total users and 300 million paid premium subscribers last quarter. The company is heavily investing in artificial intelligence to drive subscription growth, including a new chatbot interface that allows users to interact conversationally with the music platform. Söderström noted that while the music industry remains skeptical of AI-generated music, Spotify is partnering with Universal Music Group and Merlin to offer a tool for AI-generated remixes and covers. This initiative focuses on providing real artists with consent, credit, and compensation. To further encourage paid subscriptions, the company is introducing more friction to the free tier through increased advertisements and limitations. Despite the heavy investment in AI, Spotify's stock price fell 8% at market close on Tuesday.