Spotify CEO teases potential AI-powered capabilities surrounding personalization, adverts

Throughout Spotify’s second-quarter earnings name this morning, CEO Daniel Ek teased just a few methods the streaming service might introduce extra AI-powered performance. Ek touched on how AI might be used to create extra personalised experiences, summarize podcasts and generate adverts.

Earlier this 12 months, the corporate launched a DJ characteristic that delivers a curated number of music alongside AI-powered spoken commentary in regards to the tracks and artists you want. Ek says customers can count on to see related AI-powered options that intention to contextualize and personalize content material throughout the streaming service sooner or later.

“DJ is an outstanding product,” Ek mentioned through the name. “It’s in all probability one in every of my private favorites over the previous few years that we have now developed, and we’ve seen actually robust client interactions with that. And that simply talks in regards to the skill for us to contextualize and personalize all of the wonderful content material that we’re have on the Spotify platform. So I believe you’re going to see much more of that the place we will contextualize and personalize content material throughout all the platform to make it extra accessible.”

One of many methods Spotify could use generative AI is by leveraging it to summarize what podcasts are about, as it may be considerably tough to get into new podcasts. Ek mentioned doing so might make it simpler to merchandise new podcasts for customers, which might in flip result in larger engagement and extra development for creators.

Ek says one other means AI might be used to make Spotify extra environment friendly is thru AI-generated audio adverts.

“By utilizing generative AI and our instruments right here, I believe you’re going to have the ability to see that we will considerably cut back the associated fee that it takes for advertisers to develop new advert codecs,” Ek mentioned. “And that clearly implies that you as an advertiser as a substitute of getting one advert, you possibly can think about having hundreds and examined throughout the Spotify networks, issues that you can simply do right this moment utilizing textual content however you haven’t been in a position to do over video or in audio.”

Ek’s feedback come as Spotify is looking for a patent for an AI-powered “text-to-speech synthesis” system. The patent was revealed on July 20 and filed again in February. The expertise can take textual content and convert it into human-like speech audio that includes emotion and intention. The system can create sensible speech that’s able to conveying feelings reminiscent of anger, happiness or unhappiness, together with intentions reminiscent of sarcasm. It’s additionally able to doing so in a whispering or shouting method, and in accents.

The patent signifies that Spotify is trying to transcend its DJ characteristic, which merely says just a few AI-powered sentences between songs. The text-to-speech synthesis system has the potential for use for issues like narrating audiobooks utilizing AI in a means that sounds pure. It’s price noting that Apple launched AI-powered audio narration for choose titles on Apple Books early this 12 months.

The patent submitting and Ek’s feedback come as Spotify has been investing in AI voice expertise. Final 12 months, the streaming service acquired Sonantic, a London-based startup that has constructed an AI engine to create realistic-sounding human voices from textual content, for an undisclosed sum. Spotify leveraged the acquisition to energy its AI DJ characteristic.

Spotify’s second-quarter earnings revealed that there are at the moment 220 million individuals who pay for a Spotify subscription around the globe — that quantity is up 17% 12 months over 12 months. Total, Spotify now has 551 million month-to-month energetic customers. The corporate reported almost €3.2 billion ($3.5 billion at right this moment’s trade fee) in income for the newest quarter. Income is up 11% 12 months over 12 months. Nevertheless, Spotify additionally reported €247 million ($274 million) in working loss .

Spotify additionally introduced a value hike for its premium plans yesterday. Within the U.S., a person premium plan will now value $10.99 per 30 days as a substitute of $9.99. The duo plan will value $14.99 as a substitute of $12.99 and the household plan will likely be priced at $16.99 as a substitute of $15.99.