The Amazing Ways Spotify Uses Big Data, AI And Machine Learning To Drive Business Success

Name: 李欣芸
ID: D0740772
Blog#4：The Amazing Ways Spotify Uses Big Data, AI And Machine Learning To Drive Business Success
Website:　https://www.forbes.com/sites/bernardmarr/2017/10/30/the-amazing-ways-spotify-uses-big-data-ai-and-machine-learning-to-drive-business-success/#6e09e9d94bd2


Spotify, launched in 2008, is the largest on-demand music service in the world with more than 150 million active users. Spotify operates under a freemium business model and earns revenue through paid subscription fees and advertisements to third parties. As of 2018, 45% of its users pay to use the premium subscription plan. Spotify is most definitely a data-driven company, using data in pretty much any part of the organization. Daily, Spotify users create 600 gigabytes of data that the company uses to perfect its algorithms and machines to improve customer experiences and extrapolate insights. In addition, Spotify crawls the web constantly to look for blog posts and other pieces of text about music to understand what people are saying about specific artists and songs, as well as which other artists and songs are being discussed alongside them.
There are many ways in which Spotify uses data to create value for the organization and its customers. Some of them are as follows:
  1. Recommended playlists – Spotify offers its users playlists that have been curated algorithmically, including music that the user already knows as well as music that the user may be unaware of. Because Spotify has so much data on users’ listening habits, it can also curate playlists depending on different weather conditions.
  2. Discover tab – Every week, Spotify users can find a fresh new playlist of two hours waiting for them called Discover Weekly. It’s a custom playlist that includes primarily new music from a user’s favorite artists, but also introduces recommended artists based on listening history (i.e. number of times listened to certain track, whether user saved track to their own playlist, whether user visited artist’s page after listening). As shown in the figure below, many Spotify users find this to be a useful feature.
  3. Spotify “Insights” – Spotify also has a page where they list important findings or interesting insights derived from the data. For example, in the article “How Students Listen 2017”, they performed a study to see which universities had the highest percentage of party playlists and which universities had the highest amount of time spent on Spotify.
In addition to these more permanent features, Spotify also uses its data for other fun and interesting things. For example, in 2013, Spotify used streaming data to predict the winners of the Grammy Awards by analyzing users’ listening habits to determine the popularity of the music. In the end, 4 out of 6 predictions made by Spotify were correct. Furthermore, Spotify has used its data analyses to shape its marketing campaigns in different areas of the world. 

Comments

  1. EllyJune 24, 2020 at 7:55 AM

    For the music lover, I think that Spotify has great using in the big data. Spotify has enhance and customize the user’s experience. One of the most prominent ways Spotify uses the data generated by their customers is to help generate content that each user will consider in-line with their specific tastes. Although Spotify approaches this process from a variety of angles, the overarching goal is to provide a music-listening experience that is unique to each user, and that will inspire them to continue listening and discovering new music that they will be engaged with week after week. This is accomplished through the use of artificial intelligence and machine learning algorithms. Besides, Spotify has created custom content, one of the key players in data collection is Spotify’s “Discover” feature, which was first introduced in 2012. This feature began as a playlist of tracks released by a user’s favorite artists but soon evolved to become a recommendation engine of sorts, suggesting a set of songs at the end of a user’s playlists based on the existing songs within it. Last, Spotify can even digitization of user’ taste. A listener’s taste profile is also used in a Spotify function called “Daily Mixes.” These playlists are separated by the genres of music the user typically gravitate toward and are comprised of songs that the user has saved or added to playlists and the current playlists written by the same artists the user has, or some new artists or albums the user doesn’t yet know. These playlists are bottomless and ever-changing, and while they tend to have more familiar content than the “Discover Weekly” playlists, Spotify may still sprinkle in some interesting tracks you don’t know for variety.

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