Spotify CEO Daniel Ek told Wednesday’s earnings that live audio will be adopted on every major platform, just like Experience Stories. The streaming service recently acquired Locker Room, a live audio app, whose technology is expected to be used to power a series of new live audio conversations centered around sports, culture, and of course music.
Investors were curious as to how the locker room would fit in with Spotify’s current offering, noting that Steamer today focuses on providing recorded content – music and podcasts – of some sort of live social networking experience.
One, many people in the industry are already thinking, he said that he sees live audio as a new set of capabilities, which will be widely adopted. He originally dubbed it as the next “Stories” – a feature popularized by Snapchat, but made its way onto every stage.
“It’s not really different from what you think of stories,” one said, explaining his thoughts on live audio. “Stories today exist on a format across multiple platforms, including Spotify, of course, Instagram, Snap and many more. So i see [live audio] As a compelling feature set, and I think producers will engage in where they have the best kind of producer-to-fan affinity, the kind of dialogue they’re looking for. And I think it is very similar to how stories are played historically. “
In other words, each platform can attract a certain type of live audio producer, and Spotify sees its potential in the realm of music and culture – thanks to its existing and vast investment in subsequent podcasts.
Interest in live audio emerged amid an epidemic that trapped people at home and shut down traditional networking and large events like conferences. But this does not mean that the format has no future when the world opens back.
Of course, the clubhouse is credited with sparking interest in the live audio space because its special invite-only status attracted a crowd of determined networkers (and cloture-chasers) who want to participate in the next big thing. Tesla founder Elon Musk, such as Facebook CEO Mark Zuckerberg, actor-turned-investor Ashton Kutcher, Drake, Oprah and the like – other app companies began to take notice, but the app became more popular. Soon, everyone was making a clubhouse clone.
Today, live audio is planned at various stages of development or availability in Facebook, Instagram, Reddit, Twitter, Discord, Telegram and even LinkedIn.
However, instead of starting from scratch, Spotify took over. Originally a place to discuss the game, thanks to the locker room, Spotify said it would soon open live audio to more professional athletes, writers, musicians, songwriters, podcasters and “other global voices”, who are real Want to host time presentations.
In its first earnings call since the deal was announced, investors asked if Spotify believed the linear consumption of spoken word audio was more interesting than music streaming.
One explained how spoken word content can only be the beginning that comes as the format evolves.
“As more people start engaging with a specialty in a medium, you start seeing more and more professional creators jump on board. So I think it’s probably going to start with spoken word content, “he said. “But especially as it relates to Spotify, I think there will be a lot of musicians who want to engage with their fans from talking to listening parties and everything else because it’s so obvious to them that Spotify On the platform, this linkage makes meaningful conversion to demonetization opportunities based on our revenue model. “
Spotify said that the biggest request it has received from over 8 million creators is more ways for them to connect with fans. Live audio, by its nature, will give them a very direct way to do this, allowing more than 350 million users access to Spotify.
In other words, live audio does not present some / or scenario regarding streaming music, as suggested by the investor’s question. It is more than a loop where one thing feeds another. And “live”, apparently, can also mean music, not just chat.
For example, one hinted, when an artist has an album to promote, “You, as a fan, can experience that earlier than other consumers.” What really?
Artists can also use live audio to talk about their thinking around writing a song, the genius integration behind what it offers today is like “behind the song”.
“I think it really comes down to the quality of the content,” one said. “And I think when I look at our 8 million creators, we have some of the world’s best storytellers on the platform, and ultimately what people will do, and that’s what matters.”
But one area that can be difficult is moderation of live content. Live audio presents a whole new series of challenges for any company, as negotiations can quickly close. And Spotify’s position on the drawing line between free speech and police misinformation or other inappropriate content is still somewhat fake. Its top podcaster Joe Rogan recently advised listeners not to get Kovid vaccinated if they were young and healthy, for example. Spotify refuses to lose weight in this particular controversy. But it has removed more than 40 episodes from the same podcast in the past – some for seemingly inferior violations, for example about Bulletproof Coffee and its health claims.
Before spotifying in live audio, it first wants to build its own values around creator content. When a live session goes out of range, it will require a careful, worst-case plan.
Despite one’s optimism around Live Audio, Spotify’s stock tumbled after earnings as there were signs of rapid growth on the horizon, due to increasing pressure from rivals, such as Apple and Amazon. The company added 3 million paid subscribers this quarter, but missed monthly active users’ expectations and lowered its full-year guidance. Revenue rose € 2.1 billion ($ 2.6 billion) in the quarter, a 16% increase from the same period last year but down 1% from Q4 2020, raising concerns. But live audio may give fans a reason to tune back more often in the future, if Spotify integration can work.