Spotify Introduces AI-Powered Playlist for Premium Users in US, Canada

• The feature enables users to set 'rules' for generated content and schedule automatic refreshes daily or weekly, positioning listeners as active participants rather than passive recipients of algorithm suggestions
• The rollout follows Spotify's announcement earlier in January to raise premium subscription prices in the US, Estonia, and Latvia starting in February
• Spotify VP of Product Personalization emphasized that listeners want to 'actively shape their own experience' rather than simply receive platform-generated suggestions

Summary

Spotify (SPOT) launched "prompted playlist," an AI-powered feature for premium subscribers in the United States and Canada on January 22, expanding from its initial rollout in New Zealand. The feature allows users to create customized playlists using voice commands and listening history.

Key Details:

• The feature is exclusive to premium (paid) tier subscribers
• Users can set "rules" for generated content and schedule daily or weekly playlist refreshes
• VP of Product Personalization Molly Holder emphasized the shift toward users actively directing algorithms rather than passively receiving suggestions
• This differs from Spotify's previous "AI playlist" feature by offering greater user control and customization

Strategic Context:

The AI feature rollout is part of Spotify's broader strategy to convert free-tier users to paid subscriptions through enhanced functionality. The Swedish streaming platform continues investing in AI-powered personalization tools to differentiate its premium offering.

Pricing Development:

Earlier in January, Spotify announced price increases for its monthly premium subscription plan in the US, Estonia, and Latvia, effective February. The timing suggests the company is balancing premium feature additions with revenue optimization.

Market Implications:

This move positions Spotify competitively in the streaming wars by leveraging AI technology to enhance user engagement and justify premium pricing. The gradual geographic expansion demonstrates a measured approach to feature deployment while potentially driving subscription revenue growth. The combination of new AI capabilities and price increases indicates Spotify's focus on improving unit economics and premium tier monetization.