Seventeen years after its founding and 600 million users later, audio streaming platform Spotify is embracing the challenge posed by a phalanx of music streaming platforms seeking to take a piece of the Sweden-based company’s success.
“Everybody loves this idea of Spotify versus another company and it makes for an interesting story,” said Dustee Jenkins, Spotify’s chief public affairs officer.
“But really, creators everywhere benefit when there’s a lot of competition. Why? Because it gets more people streaming,” Ms Jenkins told The National at the 2024 World Governments Summit in Dubai.
There is indeed a lot of music streaming competition out there. Apple, Amazon, YouTube and Tidal are a few of many companies seeking to capture monthly streaming fees from customers who want instant access to music and other audio content.
Ms Jenkins, however, pointed out that it is the single app-centric approach that differentiates Spotify from its competitors.
“There are some companies that look to have different apps for different use cases, but we don’t want to confuse our listeners,” she said.
That approach, she stressed, made it possible for Spotify to add more content and more value on to the app in a seamless manner that benefits both users and creators.
Spotify had a presence at this year’s World Governments Summit, featuring more than 4,000 delegates from the public and private sectors, including 200 speakers from 80 international, regional and intergovernmental organisations such as the UN, the World Bank, the International Monetary Fund, the World Health Organisation, the International Atomic Energy Agency and the Arab League.
The promise and potential problems posed by artificial intelligence reverberated throughout the summit.
“Rather than dictating things by algorithms, what we seek to do is couple humans with algorithms to get the best end result,” Ms Jenkins told the panel focusing on how governments can harness talents and cultural identity.
“In this region [Middle East and North Africa], we have individuals who go all around and they're listening to talent … going to local music establishments and schools and universities, and they make sure that talent gets the opportunity to be playlisted.”
AI has proven to be a potential game-changer for musicians and streaming services, but it is also not without ample concern that it could fuel content theft from creators, potentially creating an economic content creation chasm.
Spotify already has precautionary measures in place to protect musicians and content creators, Ms Jenkins told The National.
“You can't pretend to be someone you're not,” she said, referring to the plethora of AI tools making it possible to duplicate voices.
“We're focusing on enforcing the rules we have in place around copyright.”
Spotify, Ms Jenkins said, has long made it a point to use AI in areas that enable and help the creator, and that the company used AI for various tools that help users discover content and remind those same users of the content they enjoyed in the past.
“I think this debate will continue across the industry in terms of how far is too far,” she said, referring to the seemingly endless discussions about AI ethics.
“The reality is, a lot of our creators are using AI tools to help with their creative process, whether it's helping to fill a lyric, or getting inspired by other instruments,” she added.
“We're not going to say to a creator that they should or shouldn't use AI, the creator can make that decision on their own.”
Ms Jenkins said DJ, a personalised AI guide that seeks to learn user music tastes and deliver a curated line-up of music, was an example of the company's efforts to use AI to enhance the listening experience.
“It’s essentially AI based on an individual who works at Spotify, and that individual helps you discover content,” she said.
What's next for Spotify?
While music put Spotify on the map, in recent years the company has put a lot of resources behind the podcasting boom, forming partnerships in the Middle East and hosting events bringing together prominent podcasters.
Those efforts to bolster the podcast boom show no sign of slowing down, and Ms Jenkins said the company was also excited about its recent entry into the audiobooks sector.
“This is a space that's largely been held by one company,” she said, referring to Amazon's Audible.
Ms Jenkins, however, noted that a lot of Spotify's success revolved around remembering the company's roots.
“We're always in the realm of audio, and that's the core of what we do,” she said.
“It was music first, then we added podcasts, and now we're off to audiobooks, so we'll see what comes next.”
At the heart of Spotify's efforts is continuing to make sure that the right creator finds the right listener, Ms Jenkins said.
She also reflected on Spotify's decision five years ago to establish a physical presence in Dubai.
“It's incredibly important to us,” she said. “We've seen an explosion of content and talent from the region.”
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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Doubleday
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Benefits of first-time home buyers' scheme
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- DLD registration fee can be paid through banks or credit cards at zero interest rates
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Name: Dr Hassan Mohsen Elhais
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Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
The Orwell Prize for Political Writing
Twelve books were longlisted for The Orwell Prize for Political Writing. The non-fiction works cover various themes from education, gender bias, and the environment to surveillance and political power. Some of the books that made it to the non-fiction longlist include:
- Appeasing Hitler: Chamberlain, Churchill and the Road to War by Tim Bouverie
- Some Kids I Taught and What They Taught Me by Kate Clanchy
- Invisible Women: Exposing Data Bias in a World Designed for Men by Caroline Criado Perez
- Follow Me, Akhi: The Online World of British Muslims by Hussein Kesvani
- Guest House for Young Widows: Among the Women of ISIS by Azadeh Moaveni
