Latest news with #AI_DJ
Yahoo
04-07-2025
- Business
- Yahoo
Can Spotify's Reliance on AI-Powered Offerings Drive Growth?
Spotify Technology S.A. SPOT has consistently focused on integrating AI to personalize its offerings. This approach has helped the company's steady growth in user engagement reinforce its leadership in the audio streaming market. The AI DJ feature, launched in 2023, continues to resonate with users, with reports indicating high engagement. In the first quarter of 2023, SPOT had 515 million monthly active users (MAU), which increased 16.9% in the fourth quarter of 2023. The company then reported 615 million MAU, marking an increase of 2.1% from the previous quarter. This figure grew nearly 10% by the end of the fourth quarter of 2024. In the most recent March quarter, Spotify reported 678 million MAU, adding 3 million from the previous quarter and rising 10.2% from the same quarter last year. SPOT's AI DJ partially contributed to MAU growth, as other AI-powered features enhanced the user experience. Spotify Wrapped, an AI-driven personalized summary of listening habits, remains a strong tool for retention and engagement. In the recent earnings call, management explained that the slowdown in the first quarter was due to the strong performance of Spotify Wrapped in the previous quarter. This feature is likely to boost user engagement again in the second half of the year as well. Spotify's AI Playlist feature is gaining traction, which allows premium users to create playlists from prompts, and it has expanded to more than 40 new markets in April 2025. This feature improves the value proposition of a paid subscription, contributing toward average year-over-year revenue per user growth of 4% in the first quarter of 2025. The company has also utilized AI in optimizing its ad targeting for a significant proportion of its ad-supported user base, enhancing its user engagement. In doing so, SPOT registered 8% year-over-year growth in ad-supported revenues and witnessed an 885-basis-point increase in its ad-supported gross margin. The company has enhanced its focus on AI-based offerings up a notch by accepting audiobooks from ElevenLabs, an AI software company that offers high-quality voice narration technology. Authors can now use the ElevenLabs platform to narrate their audiobooks in 29 languages and distribute the content to Spotify, expanding their reach. That said, the global audiobooks market is anticipated to grow, seeing a CAGR of 26.2% from 2025 to 2030. Partnering with ElevenLabs is a strategic move for Spotify, allowing it to extend its global reach, strengthen its competitive moat and monetize its enormous global audience. The SPOT stock has skyrocketed 128.8% in the past year, significantly outperforming Amazon AMZN and Apple AAPL, and the industry as a whole. The industry has rallied 32%. Amazon has gained 11.7%, while Apple has declined 5.2%. Image Source: Zacks Investment Research From a valuation standpoint, SPOT trades at a forward price-to-earnings ratio of 64.34X, higher than Amazon's 33.26X, Apple's 28.33X and the industry's 39.73X. Image Source: Zacks Investment Research Spotify has a Value Score of F, while Amazon and Apple have a Value Score of D, respectively. The Zacks Consensus Estimate for Spotify's earnings for 2025 is pegged at $9.22 per share, implying 55% year-over-year growth. Image Source: Zacks Investment Research SPOT currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
04-07-2025
- Business
- Globe and Mail
Can Spotify's Reliance on AI-Powered Offerings Drive Growth?
Spotify Technology S.A. SPOT has consistently focused on integrating AI to personalize its offerings. This approach has helped the company's steady growth in user engagement reinforce its leadership in the audio streaming market. The AI DJ feature, launched in 2023, continues to resonate with users, with reports indicating high engagement. In the first quarter of 2023, SPOT had 515 million monthly active users (MAU), which increased 16.9% in the fourth quarter of 2023. The company then reported 615 million MAU, marking an increase of 2.1% from the previous quarter. This figure grew nearly 10% by the end of the fourth quarter of 2024. In the most recent March quarter, Spotify reported 678 million MAU, adding 3 million from the previous quarter and rising 10.2% from the same quarter last year. SPOT's AI DJ partially contributed to MAU growth, as other AI-powered features enhanced the user experience. Spotify Wrapped, an AI-driven personalized summary of listening habits, remains a strong tool for retention and engagement. In the recent earnings call, management explained that the slowdown in the first quarter was due to the strong performance of Spotify Wrapped in the previous quarter. This feature is likely to boost user engagement again in the second half of the year as well. Spotify's AI Playlist feature is gaining traction, which allows premium users to create playlists from prompts, and it has expanded to more than 40 new markets in April 2025. This feature improves the value proposition of a paid subscription, contributing toward average year-over-year revenue per user growth of 4% in the first quarter of 2025. The company has also utilized AI in optimizing its ad targeting for a significant proportion of its ad-supported user base, enhancing its user engagement. In doing so, SPOT registered 8% year-over-year growth in ad-supported revenues and witnessed an 885-basis-point increase in its ad-supported gross margin. The company has enhanced its focus on AI-based offerings up a notch by accepting audiobooks from ElevenLabs, an AI software company that offers high-quality voice narration technology. Authors can now use the ElevenLabs platform to narrate their audiobooks in 29 languages and distribute the content to Spotify, expanding their reach. That said, the global audiobooks market is anticipated to grow, seeing a CAGR of 26.2% from 2025 to 2030. Partnering with ElevenLabs is a strategic move for Spotify, allowing it to extend its global reach, strengthen its competitive moat and monetize its enormous global audience. Spotify's Price Performance, Valuation & Estimates The SPOT stock has skyrocketed 128.8% in the past year, significantly outperforming Amazon AMZN and Apple AAPL, and the industry as a whole. The industry has rallied 32%. Amazon has gained 11.7%, while Apple has declined 5.2%. 1-Year Price Performance From a valuation standpoint, SPOT trades at a forward price-to-earnings ratio of 64.34X, higher than Amazon's 33.26X, Apple's 28.33X and the industry's 39.73X. P/E - F12M Spotify has a Value Score of F, while Amazon and Apple have a Value Score of D, respectively. The Zacks Consensus Estimate for Spotify's earnings for 2025 is pegged at $9.22 per share, implying 55% year-over-year growth. SPOT currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Spotify Technology (SPOT): Free Stock Analysis Report This article originally published on Zacks Investment Research (
TechCrunch
13-05-2025
- Entertainment
- TechCrunch
Spotify's AI DJ now let you use voice commands to personalize your tunes
In a bid to make its AI DJ feel more interactive, Spotify is updating the feature to allow users to request music or change the mood of a playlist using voice commands. The company is rolling out this feature, initially only supported in English, in over 60 markets for its Premium subscribers. Previously, users could only listen to the AI DJ play songs with added commentary in between certain tracks. Now, the feature is becoming interactive. Users can tell the AI DJ to change the mood or genre, or have it play tracks from specific artists. Image credits: Spotify To use the AI DJ, you can type in 'DJ' in the search bar, then hold the DJ button on the bottom right to make requests through voice commands. If you want to change the feel of the playlist without making a specific request, you can quickly press the DJ button. Spotify first launched the AI DJ feature in February 2023 in the U.S. and Canada. The company later rolled it out globally in August 2023. Last year, the music streaming company added support for a Spanish-speaking AI DJ. The company's other big AI feature lets users create playlists using text prompts.
