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Spotify’s Algorithmic Alchemy: How AI-Powered Playlists Built a $100 Billion Empire

  • In 2014, Spotify acquired The Echo Nest, a music intelligence startup, for $100 million, leveraging AI to dominate music discovery.
  • Discover Weekly, launched in 2015, is a key feature contributing to Spotify's success, proving that AI-driven features can enhance user retention.
  • A framework is provided for product managers to design AI-powered recommendation systems that prioritize user experience, trust, transparency, testing, and scalability.
  • Spotify's PMs engineered virality with features like Spotify Wrapped, showcasing that data-driven features can become viral when creatively packaged.

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