Spotify CEO Daniel Ek says the company has emerged from “a few notable days here at Spotify” as a better company overall, and users will see changes almost immediately to lessen the chance of its creators spreading misinformation about the COVID-19 pandemic — or anything else.
“There’s no doubt that the last several weeks have presented a number of learning opportunities,” Ek said in his opening remarks during the company’s 2021 Q4 earnings call Wednesday (Feb. 2). “There’s still work to be done, but I’m pleased that Spotify is already implementing several first-of-its-kind measures to help combat misinformation and provide greater transparency.
“We believe we have a critical role to play in supporting greater expression while balancing it with the safety of our users and we will continue to partner with experts and invest heavily in our platform functionality teams and product capabilities to meet this evolving need head-on,” he continued.
Joe Rogan’s ongoing discussion of COVID-19 drew the ire of many high-profile music artists who stream their music on Spotify, most notably Neil Young, who pulled his entire catalog when Spotify refused to sanction Rogan or remove him from the platform.
Young issued his ultimatum in a letter that was posted to his website Jan. 25, but later deleted, saying in part, “They can have Rogan or Young. Not both.”
Related: Comes A Time For Neil Young to Split From Spotify Over Dustup With Joe Rogan Experience Podcast
In terms of Q4 results, Spotify had its largest growth ever in monthly active users in the final three months of 2021, and reported an increase of 29% in audience engagement year over year, with Gen Z representing the highest level of interaction.
Additionally, rap music soared 40% from 2020 levels. Ek said that advertising represents Spotify’s second key revenue driver, with ad-supported revenue making up 15% of the company’s total revenue in the quarter.
“While the ad business is more prone to seasonal blips, I see this momentum continuing in 2020 and beyond,” said Ek, noting the company will “continue to test different windowing strategies for our exclusive podcast partnerships to get the advantage of that broader audience reach.”
“I think we’ve only scratched the surface of the creative potential in audio to become the preferred destination for audio players, and we will accelerate the move from a one-size-fits-all model to a much more dynamic and open platform,” Ek added, noting the company can someday top 50 million creators from its current 11 million.
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