By Jaspreet Singh
Aug 4 (Reuters) - Spotify said higher marketing and development costs would hurt its profit in the current quarter as the Swedish music-streaming giant bets heavily on features powered by AI to attract users.
The company also projected third-quarter monthly active users below Wall Street estimates on Tuesday, blaming the weakness on product changes in emerging markets such as India and Indonesia that may help Spotify in raising prices.
"So examples would be sign-up changes, deprecation of old lower-end Android devices, carefully introducing some friction in the ad load with respect to increasing ad load and some limitations on our free tier as well," Co-CEO Alex Norström told Reuters.
Price hikes have become central in recent years to Spotify's push to prove it can convert its huge user base into meaningful profit. The company has in recent months also leaned on AI to fend off startups built around the technology, such as Suno.
#reuters #users #company
Aug 4 (Reuters) - Spotify said higher marketing and development costs would hurt its profit in the current quarter as the Swedish music-streaming giant bets heavily on features powered by AI to attract users.
The company also projected third-quarter monthly active users below Wall Street estimates on Tuesday, blaming the weakness on product changes in emerging markets such as India and Indonesia that may help Spotify in raising prices.
"So examples would be sign-up changes, deprecation of old lower-end Android devices, carefully introducing some friction in the ad load with respect to increasing ad load and some limitations on our free tier as well," Co-CEO Alex Norström told Reuters.
Price hikes have become central in recent years to Spotify's push to prove it can convert its huge user base into meaningful profit. The company has in recent months also leaned on AI to fend off startups built around the technology, such as Suno.
#reuters #users #company
7 hours ago
