Spotify

“It's the number one thing why most organizations break down and why you need processes and all the other bureaucracies ultimately because there's no trust. If you had a hundred percent trust, you wouldn't need any of this stuff, and you would move much faster.”

“I asked him, hey can I come and learn from you? And he was incredibly gracious and we've obviously been friends for a long time, and he said sure. And so I spent the better part of what I believe the first time was like a week literally in pretty much all of h…”

“I actually feel like I owe that guy to keep pushing myself, right? Because there's so many things, there's so many demands of my time, so many things that tells me to sort of downshift gear into an easier gear, because life would be a lot more comfortable that…”

“I certainly tried to mimic Steve Jobs. I certainly tried to mimic Bezos and Gates, and all of the great ones you know, the very charismatic ones, like Howard Schultz of Starbucks, and, you know, I've learned from all of them, and in a way I've tried to imitate…”

“That's how Spotify came to be. I literally couldn't care about anything else for at the very least the first 15 years.”

“I think happiness is a trailing indicator of impact.”

“Trust is the, this notion that you'll keep doing actions that will ladder up over time. It really compounds, but you're going to add maybe one percent of trust for each positive interaction you're going to do, but it takes one interaction that's bad to ruin al…”

“Which problems am I passionate about solving? And which problems can I spend the next decade of my life fixing? Because if I'm not interested enough in it to spend a decade fixing it, it's probably not worth pursuing.”

“If I truly believed that, that there would have been a company that Could further our mission and cared about what we cared about as much as we did. I probably would have sold. But I never found that. And because I didn't find that I, we just kept going.”

“So what happened with Spotify is sort of against all the common wisdom and wealth, which is I don't really run product anymore. Because what happened was I got this guy called Gustav that you now met and he runs product. And he's actually way better than me at…”

“The value of a company is the sum of all problems solved.”

“I've gained in periods of my life, like 40 pounds in my worst negotiations, et cetera.”

“Of course, Spotify is worth a hundred and fifty billion, and the entire record industry is worth half that together.”

“Daniel Ek, the founder of Spotify and I are working on this project to try to outline all the different founder archetypes. We might even like commission a book on this because it's so important.”

“Without naming which ones on many of the big platforms, people, people regretted almost 60% of the time they spent or more.”

“The only answer I've come to as I've spoken to people there is that it actually has to do with tenure of leadership, which is one of the principles I've also tried to internalize Spotify. So they have very long tenure at the senior leadership, which means that…”

“Almost 70% of people on Spotify work out with Spotify.”

“Premeditated media. Is something that, that I think everyone should at least have access to if they want to. It works for me and I think it will work for a lot of people. And I think it's, I think that need is not going to get less. I think it's going to get, …”

“So we made the decision. Sort of the anti-engagement decision to allow people, anyone, to turn off video if they want to, and just listen.”

“We actually changed completely how we run the company from the way Daniel runs it.”

“When we created our strategy, we bet on three things, and they were all basically counter positions to Apple deliberately. One was freemium. We believe that Apple would, if they even did a product, a free product, they would struggle to do advertising. They tr…”

“Because we have a single experience strategy, our strategy is literally a super app. We try to build first music, then podcasts, and books, and more things into a single product. I think our biggest risk is to ship the org chart. So if we divide it and say, ev…”

“When things are stable, market share stays stable. You don't eat market share. So when there's change, there's risk. You can lose market share, but that is also when you have the most opportunity to eat market share. If you adopt the change.”

“We bought this company called Sonantic to be able to produce voice. I mean, you can buy voice anywhere on the internet today, but it's quite expensive per minute. So if you want to serve seven hundred million users with like a few minutes of voice per day, You…”

“So we chose to take the pain of doing a single app with all the complexity that comes with that for the benefit of reaching what was then already 300 something million users, maybe. But it was much harder. We chose like pain and cost somewhere to get benefits …”

“That's what they literally said in their internal meetings. They gave us six months.”

“And so when we look at something, you know, we're talking about fitness now, for example. Why? Because we think very few people regret doing a workout.”

“I believe that technology is a necessary ingredient for change. But not sufficient. I think you can cause havoc with technology, like piracy, but when things really change is when you take a new technology and marry it with a new, often contrarian business mod…”

“So one benefit of tenure is the trust. People keep you honest, unless you know, you become too full of yourself, which is always a risk with success. But the other benefit is this efficiency. Of like, people know. You don't have to give as much context.”

“And when we looked at their usage, I think Apple podcast was still like 98 and a half percent.”

“This is the Spotify story of access versus, versus ownership, for example, which is, by the way, why I would also love Steve Jobs to be around, but also not because, you know, he tried to kill us many times.”

“Most of our revenue is from subscribers paying for their experience, you know, like almost 90% of the revenue.”

“We chose to say, we're not going to have our own leadership meetings. We have a single one with all of our SVPs. So we have a single meeting every Tuesday called the E-Team for three hours. With all the SVPs of all the internal functions, like, you know, marke…”

“We were actually the lowest regret content sort of on the internet in terms of the platforms we asked for, or if you flip it around some of the time most well spent on the internet with, you know, Gen Z saying that they value almost almost 90% of the time they…”

“So if you're optimized for tenure, you have to mitigate for the risk that you don't get fresh blood, that your career ladder is slow. So maybe people who are talented feel like, well, that's going to take 10 years to get up the career ladder. So then you have …”

“When I came to Spotify, We already had one of these large data sets of music playlists, and so there were some very talented people there, specifically a guy named Erik Bernadsson, who at the time, this is 2009, was doing machine learning something called coll…”

“So this is something I'm working on at Spotify, and we released this just a few weeks ago, something called Save to Spotify. When you sit in your code code or codex or something, you can just, you know, you can ask these agents to go out and look at informatio…”

“And so one thing we chose to optimize for was the single experience. We're really good at building a single experience that actually does a billion different things, and most people don't even realize that On the back end, it's even more complicated because yo…”

“So already about three years ago, He asked me and Alex Nordstrom to step up and become co-presidents and sort of start to run the day to day of Spotify for him. He was still the CEO. And so he's been gradually like giving us more and more rope to run the busin…”

“When AI started happening, or what was called machine learning back then, I felt that we just weren't strong enough in deep learning specifically. We knew the old school matrix factorization stuff. So we did an acquisition of a company called the Econest in Bo…”

“The record companies, I believe, never negotiated that when they had that leverage, because they didn't even want to have to share that information with the artist.”

“I just spent time and recorded an episode with Gustaf, who's the co-CEO of Spotify right now. And he did something very similar because he tries to avoid any kind of feeds. The whole thesis behind, like, the organizing principle of Spotify is, like, time well …”

“Like, most people never even listen to the content. They're just looking for an excuse because your podcast gave them so much value. That will always work. It worked today. It worked a hundred years ago, and it will work a hundred years from now.”