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Spotify will 'double down' on music in 2025, but does that mean Hi-Fi or AI?
- Spotify CEO Daniel Ek praised the company's performance in an earnings call this week, saying that 'We’re gonna double down on music in 2025, and I’m personally very excited about that.'
- Spotify's doubling down on music could result in a Hi-Fi tier for audiophiles, similar to Tidal or Apple Music, which the company has long teased but not yet delivered.
- A Spotify Hi-Fi tier with lossless audio could be complemented with additional perks and bonuses for big music fans, which Spotify could use to monetise heavy users whilst removing one big incentive to switch to another lossless audio platform.
- Spotify's heavy focus on its podcast business in recent years has come at the expense of its music offering, meaning this recent pronouncement from Ek could suggest a shift back towards music in particular areas.
- Spotify needs to increase its profit margin in 2025. Critics of Spotify's payment model argue that measures to further do this, which Spotify has already built on reduced payouts for artists, are a real cause for concern.
- Last year, reporting claimed that Spotify was filling listeners' recommendations with 'fake artists', filling out playlists with non-existent songs from production companies that didn't need the same level of royalties.
- Discover Mode on Spotify invites artists to reduce their earnings in exchange for being algorithmically pushed to more users, which again reduces payouts for artists and threatens to crowd out smaller acts.
- Spotify Wrapped offered an AI summary of users' listening habits for the first time in 2025, and there are concerns that AI music could be the next stage in helping the company to make more profit.
- It appears Spotify will become more profitable through planned reductions in payouts for artists and musicians, a cause for concern for the music industry.
- AI-generated music could feature as part of Spotify's integrated user-generated playlists, replacing streams from artists who need to be paid and proving a threat to real music-made artists.
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