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Spotify: Difference between revisions
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On February 22 2023, Spotify launched "DJ", a new AI feature aimed at improving music listening experience for its users. The Open-AI powered feauture provides spoken commentary about the tracks and artists you like. It also generates a curated list of those artists and tracks. It is currently in a beta testing and is only available to Spotify English subscribers in U.S and Canada.<ref>https://techcrunch.com/2023/02/22/spotify-launches-dj-a-new-personalized-music-lineup-that-includes-ai-powered-commentary/</ref> | On February 22 2023, Spotify launched "DJ", a new AI feature aimed at improving music listening experience for its users. The Open-AI powered feauture provides spoken commentary about the tracks and artists you like. It also generates a curated list of those artists and tracks. It is currently in a beta testing and is only available to Spotify English subscribers in U.S and Canada.<ref>https://techcrunch.com/2023/02/22/spotify-launches-dj-a-new-personalized-music-lineup-that-includes-ai-powered-commentary/</ref> | ||
== | == Regulatory Environment == | ||
December 18, 2023: Spotify slams the French government for proposing to introduce a tax on streaming services, saying that it will be a blow to European firms given their strong presence in France. According to Antoine Monin, Director General of France, though Spotify can absorb the tax, it is “in a fragile financial balance.” The bill proposes to impose a 1.75% tax rate on music streaming companies like Spotify. France is currently ranked the sixt largest recorded music market in the world having generated a revenue of €920 million from recorded music in 2022<ref>https://www.musicbusinessworldwide.com/spotify-and-deezer-slam-frances-government-plans-to-introduce-a-music-streaming-tax-in-the-market12/</ref>. | |||
December 12, 2023: Spotify says it will continue its services in Uruguay after the government clarified that artists will be responsible for the costs included in the new bill<ref>https://newsroom.spotify.com/2023-12-12/spotify-to-continue-its-service-in-uruguay/</ref>. | December 12, 2023: Spotify says it will continue its services in Uruguay after the government clarified that artists will be responsible for the costs included in the new bill<ref>https://newsroom.spotify.com/2023-12-12/spotify-to-continue-its-service-in-uruguay/</ref>. | ||
December 1, 2023: Spotify said it will start to phase out its services in Uruguay | December 1, 2023: Spotify said it will start to phase out its services in Uruguay on January 1, 2024, and fully cease it by February due to changes in government policy. Recently, the government of Uruguay passed a bill that would make Spotify pay artists twice what it pays at the moment (70% of revenue generated from content). Spotify said it will move premium subscribers to a Free account at the end of December<ref>https://newsroom.spotify.com/2023-12-01/spotify-is-being-pushed-out-of-uruguay/#:~:text=Unfortunately%2C%20Spotify%20will%20begin%20to,%28the%20Rendici%C3%B3n%20de%20Cuentas%29</ref>. | ||
== Market Share == | |||
Lisa Yang, MD of Media & Internet at Goldman Sachs’ Global Investment Research, said in August 30 Business Worldwide Podcast that Spotify’s market share has been stable since 2017. “Spotify is probably the most important independent music streaming ‘pure play’, and competes against services that are part of larger tech conglomerates, that obviously have deep pockets and don’t necessarily think about music [as] the center of their profit pool. Despite that, and despite the proliferation of new services… what you find is that, outside of China, if you look at the [global market] share of Spotify, it has been actually broadly stable since 2017, at around '''41% or 42%'''," she said. She expects Spotify’s market share outside China to decline only to about '''39%''' over time. Yang expects YouTube Music to become the second-largest DSP by 2030. “Outside of Spotify, what’s interesting is [that] YouTube Music has been taking the most share amongst the major DSPs. '''We do think YouTube Music will probably become the second-largest DSP by 2030''', overtaking Apple Music," she said. In their latest Music In The Air report Yang and her team estimate that Spotiy had '''a 34.8% global market share in 2022'''( 2021: 35.4%) but said that its share loss decellerated in 2022. On the other hand, YouTube Music had a market share of 12.7% in 2022(2021:12.0%). “YouTube Music has now gained almost 3ppt of market share over the last 3 years. YouTube reported >80mn YouTube Music/Premium accounts in September 2022 (including those in trials), a 30mn increase from Sept 2021," they said. They expect Spotify to maintain a market share achieved in 2023 of 34.7% and are forecasting its market share to be 32.9% in 2030<ref>https://www.musicbusinessworldwide.com/why-goldman-sachs-believes-that-spotify-will-remain-the-worlds-dominant-music-streaming-service-in-2030/</ref>. | Lisa Yang, MD of Media & Internet at Goldman Sachs’ Global Investment Research, said in the August 30 Business Worldwide Podcast that Spotify’s market share has been stable since 2017. “Spotify is probably the most important independent music streaming ‘pure play’, and competes against services that are part of larger tech conglomerates, that obviously have deep pockets and don’t necessarily think about music [as] the center of their profit pool. Despite that, and despite the proliferation of new services… what you find is that, outside of China, if you look at the [global market] share of Spotify, it has been actually broadly stable since 2017, at around '''41% or 42%'''," she said. She expects Spotify’s market share outside China to decline only to about '''39%''' over time. Yang expects YouTube Music to become the second-largest DSP by 2030. “Outside of Spotify, what’s interesting is [that] YouTube Music has been taking the most share amongst the major DSPs. '''We do think YouTube Music will probably become the second-largest DSP by 2030''', overtaking Apple Music," she said. In their latest Music In The Air report Yang and her team estimate that Spotiy had '''a 34.8% global market share in 2022'''( 2021: 35.4%) but said that its share loss decellerated in 2022. On the other hand, YouTube Music had a market share of 12.7% in 2022(2021:12.0%). “YouTube Music has now gained almost 3ppt of market share over the last 3 years. YouTube reported >80mn YouTube Music/Premium accounts in September 2022 (including those in trials), a 30mn increase from Sept 2021," they said. They expect Spotify to maintain a market share achieved in 2023 of 34.7% and are forecasting its market share to be 32.9% in 2030<ref>https://www.musicbusinessworldwide.com/why-goldman-sachs-believes-that-spotify-will-remain-the-worlds-dominant-music-streaming-service-in-2030/</ref>. | ||
==Spotify Podcasts and Audiobooks== | ==Spotify Podcasts and Audiobooks== | ||