“Our entire strategy is basically, we decided this many years ago before it was popular, but you saw the Chinese app, the Chinese starting to build super apps, whereas the Western world built one app per use case. We kind of adopted the Chinese super app idea and said, The hardest thing is going to be to get installs. You can see the average number of installs from the app store dropping like below one on average. So distribution became the most important thing. And then we chose, you know, when we did podcasts and later books and videos, we're going to build it in the same application because then we can leverage our own distribution.”
quote is from the automated transcript, cleaned for reading:
filler sounds and stutters are removed, nothing is rephrased. names can be misheard
(the analysis reads context, assessments check outside sources). how →
More from Gustav Söderström
Opinion
Competing streaming services report higher per-stream payouts because their engagement is lower
“So these other companies have higher per stream because they have a worse product.”
Gustav SöderströmMay 20, 2025▶ 1:04:33Spotify’s Journey To Profitability · Invest Like The Best
PredictionNot checkable as stated
Most consumer products will become conversational interfaces within five to ten years
“And I think if you fast forward five to 10 years, almost all big consumer products are going to be a conversation to some extent, rather than this service that you use.”
Gustav SöderströmMay 20, 2025▶ 6:04Spotify’s Journey To Profitability · Invest Like The Best
PredictionNot checkable as stated
AI's impact on non-coding engineering tasks will exceed code generation
“But then the really interesting side is these other seven hours, what a developer does, which is a lot of communication, planning, working with designers, prototyping meetings. Those things I think will actually have as big or even more impact than the coding …”
Gustav SöderströmMay 20, 2025▶ 7:54Spotify’s Journey To Profitability · Invest Like The Best
Insight
Enterprise AI adoption primarily requires traditional API engineering, not AI engineering
“And actually, so actually my biggest job to enable AI is not AI engineering. It's old school engineering, exposing all this, these, this data that we have so that you can have a reasoning engine reason for you as a product person, or actually for me as a consu…”
Gustav SöderströmMay 20, 2025▶ 33:50Spotify’s Journey To Profitability · Invest Like The Best
Opinion
AI currently delivers only a disappointing 7% developer speedup in big tech
“I've seen studies from other big companies that if you actually measure out of a developer's time, this, the speed up is like seven percent or something, which sounds very disappointing because of all these things, like the net new coding is a small part, net …”
Gustav SöderströmMay 20, 2025▶ 37:36Spotify’s Journey To Profitability · Invest Like The Best
AssertionSupported
Spotify paid out 70% of revenue and remained unprofitable for 15 years
“This year, Is sort of the first year of profitability for Spotify since its founding. People say that, you know, there's a lot of talk about Spotify sharing enough of the revenue. You know, we share about 70%, but the truth is the other 30% we haven't kept. We…”
Gustav SöderströmMay 20, 2025▶ 1:01:38Spotify’s Journey To Profitability · Invest Like The Best
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