Spotify has launched a new AI-enhanced feature called 'prompted playlist' for its premium users in the United States and Canada. This innovative tool allows listeners to tailor playlists based on their listening preferences and direct the algorithm with personal commands, marking a shift toward more active user engagement. The rollout follows earlier trials in New Zealand and aligns with Spotify's ongoing efforts to promote its subscription service amid recent pricing updates.
Key Points
- Spotify launched 'prompted playlist', an AI-driven feature for premium users in the US and Canada that allows personalized playlist creation through direct user commands and listening history.
- The feature enables an active user role in directing music selection, unlike previous passive AI-generated playlists, with the ability to set content rules and refresh intervals.
- This rollout follows a successful New Zealand trial and aligns with Spotify's strategy to convert free-tier users to paid plans amid a recent price increase to $12.99 monthly in several markets.
Spotify unveiled its latest advancement in personalized music streaming by launching 'prompted playlist', an artificial intelligence-powered feature available to premium subscribers in the United States and Canada as of Thursday. This tool enables users to customize playlists dynamically, utilizing their listening history alongside explicit commands to shape the music experience.
After a successful trial period in New Zealand, Spotify is expanding this interactive feature to North American markets. The company views this as part of a broader push incorporating AI technologies to encourage free-tier users to upgrade to paid subscriptions.
Molly Holder, Spotify's Vice President of Product Personalization, emphasized during a media briefing that listeners now desire more than just passive algorithmic recommendations. Instead, they want to participate actively by influencing their music feed, using their own words and intentions to guide playlist creation.
Unlike previous AI playlist innovations, the prompted playlist function lets users establish specific 'rules' for the music selection, with options to set refresh schedules on a daily or weekly basis. This ensures that the playlists remain fresh and aligned with the user's current preferences.
This product introduction coincides with Spotify's recent announcement to increase its monthly premium subscription fee by $1, making the new price $12.99 in the United States, as well as in Estonia and Latvia, effective starting February. The price change signals the company's efforts to balance user growth with revenue generation amidst intensifying competition in the streaming sector.
Risks
- The feature's dependence on user engagement and AI accuracy presents uncertainties about its adoption and effectiveness in retaining premium subscribers.
- Increasing the premium subscription price could potentially deter some current or prospective users, impacting Spotify's growth in competitive streaming markets.
- The evolving AI personalization features may require continuous refinement to meet diverse user expectations and avoid disenchantment with algorithmic recommendations.