spotify

For the trendiest tenants in Hollywood office buildings, it’s the latest fad that goes way beyond designer furniture and art: mini studios

To capitalize on the never-ending flow of stars and influencers who come through Los Angeles, a growing number of companies are building bright little corners for content creators to try products and shoot short videos. Athletic apparel maker Puma, Kim Kardashian’s Skims and cheeky cosmetics retailer e.l.f. have spaces specifically designed to give people a place to experience and broadcast about their brands.

Hollywood, which hasn’t historically been home to apparel companies, is now attracting the offices of fashion retailers, says CIM Group, one of the neighborhood’s largest commercial property landlords.

“When we’re touring a space, one of the first items they bring up is, ‘Where can I build a studio?’” said Blake Eckert, who leases CIM offices in L.A.

Their studio offices also serve as marketing centers, with showrooms and meeting spaces where brands can host proprietary events not open to the public.

“For companies where brand visibility is really important, there is a trend of creating spaces that don’t just function as offices,” said real estate broker Nicole Mahalka of CBRE, who puts together entertainment property leases and sales.

Puma’s global entertainment marketing team is based in its new Hollywood offices, which works with such musical celebrity partners as Rihanna, ASAP Rocky, Dua Lipa, Skepta and Rosé, said Allyssa Rapp, head of Puma Studio L.A.

Allyssa Rapp, director of entertainment marketing at Puma, is shown in the Puma Studio L.A. The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though.

(Kayla Bartkowski / Los Angeles Times)

Hollywood is a central location, she said, for meeting with celebrities, stylists and outside designers, most of whom are based in Los Angeles.

The office is a “creation hub,” she said, where influencers can record Puma’s design prototyping lab supported by libraries of materials and equipment used to create Puma apparel. The company, founded in 1948, is known for its emblematic sneakers such as the Speedcat and its lunging feline logo, and makes athletic wear, accessories and equipment.

Puma’s entertainment marketing team also occupies the office and sometimes uses it for exclusive events.

“We use the space as a showroom, as a social space that transforms from a traditional workplace into more of an experiential space,” Rapp said.

Nontraditional uses include content creation, sit-down dinners, product launches, album listening parties and workshops.

“Inviting people into our space and being able to give them high-touch brand experiences is something tangible and important for them,” she said. “The cultural layer is really important for us.”

The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though. There’s no retail portal to the exclusive Hollywood offices.

Puma shoes are on display in the Puma Studio L.A.

(Kayla Bartkowski / Los Angeles Times)

Puma is also positioning its L.A studio as a connection point for major upcoming sporting events coming to Los Angeles, including the World Cup this summer, the 2027 Super Bowl and 2028 Olympics.

In-office studios don’t need to be big to be impactful, Mahalka said. “These are smaller stages, closer to green screen than a massive soundstage.”

Social media is the key driver of content created by most businesses, which may set up small booth-like stages where influencers can hawk hot products while offering discounts to people watching them perform.

Bigger, elevated stages can accommodate multiple performers for extended discussions in front of small audiences, with towering screens behind them to set the mood or illustrate products.

Among the tricked-out offices, she said, is Skims. The company, which is valued at $5 billion, is based in a glass-and-steel office building near the fabled intersection of Hollywood Boulevard and Vine Street.

The fashion retailer declined to comment on the studio uses in its headquarters, but according to architecture firm Odaa, it has open and private offices, meeting rooms, collaboration zones, photo studios, sample libraries, prototype showrooms, an executive lounge and a commissary for 400 people.

Pieces of a shoe sit on a workbench in the Puma Studio L.A.

(Kayla Bartkowski / Los Angeles Times)

The brands building studios typically want to find the darkest spot on the premises to put their content creation or podcast spaces, Eckert said, where they can limit outside light and sound. That’s commonly near the center of the office floor, far from windows and close to permanent shear walls that limit sound intrusion.

They also need space for green rooms and restrooms dedicated to the talent.

Spotify recently built a fancy podcast studio in a CIM office building on trendy Sycamore Avenue that is open by invitation-only to video creators in Spotify’s partner program.

“Ambitious shows need spaces that support big ideas,” Bill Simmons, head of talk strategy at Spotify, said in a statement. “These studios give teams room to experiment and keep pushing what’s possible.”

Published on
11/02/2026 – 17:52 GMT+1

Spotify stocks spiked 6% higher at market opening this Wednesday, later paring down some of its gains, after the company released its earnings report on Tuesday.

The popular music platform closed 2025 with a little over €2.2bn in net profits which represents a 94% increase, almost double what was achieved the year prior.

The positive result reinforced the historic turnaround the firm accomplished since 2024, when it became profitable on the year for the first time. Before then, Spotify operated at a loss for almost two decades after being founded in 2006.

Last year, the music streaming platform grew in users by 11% and in paying subscribers by 10%. Additionally, Spotify also cut costs and increased prices in several markets achieving a 33.1% profit margin, the highest in its history.

A substantial part of the success in 2025 occurred towards the end of the year, when the company hit a total of 751 million monthly active users (MAUs), after its biggest quarterly increase in activity.

For the first quarter of 2026, Spotify is projecting a continuation of this trajectory. The report points to around €4,5bn in revenue and 759 million MAUs.

The Swedish executive chairman and founder, Daniel Ek, who resigned from the CEO position last month, stated in the earnings call that Spotify has “built a platform for audio but increasingly to all other ways in which creators connect to the public”.

The new CEO, Alex Norström, also declared that “after a year of execution, 2026 will be the year of elevating ambition”.

Music industry and AI

The impact of Spotify’s growth in 2025 was also felt outside the company, in the music industry as a whole.

The firm paid out more than €11bn to artists last year which the earnings report states is “the largest annual payment to music creators by any platform in history”.

Moreover, the Swedish company stated that “we also helped artists generate over one billion dollars in ticket sales, connecting fans to live events”.

Going forward, one of Spotify’s biggest bets is on AI integration, as is the case for most tech companies.

The firm has accelerated the launch of tools such as a playlist generator based on prompts, and a personalised agentic DJ, which have already been used by millions of paying subscribers.

However, artificial intelligence is also presenting new problems for Spotify such as AI-generated music. In the earnings call, the co-CEO, Gustav Söderström, stated that “the issue isn’t new but it has scaled”.

Söderström added that the company is working closely with the music industry to allow artists and record labels to include disclaimers specifying the production methods.

In a historic gain, Spotify saw a record increase of 38 million monthly active users at the end of 2025.

According to the streamer’s fourth-quarter earnings report released Tuesday, the Sweden-based company reported an 11% increase in monthly active users, bringing the total to 751 million. It’s the biggest net add in the company’s history. There was similarly a 10% increase in paid subscribers, rising to 290 million. Spotify’s total revenue also topped $5.3 billion, up 7%.

The company credits much of last quarter’s success to what it says was its biggest Wrapped campaign yet, which engaged 300 million users globally and had 630 million shares in 56 different languages. Spotify also expanded and enhanced tech features globally, like adding music videos and more access to audiobooks, for both premium and free subscribers.

“Today, what we’ve really built is a technology platform for audio — and increasingly, for all the ways creators connect with audiences. And this identity will matter even more going forward,” said Daniel Ek, Spotify’s founder and executive chairman, in a press release.

“The next wave of technology shifts — AI, new interfaces, wearables, new ways of interacting with content — these will reshape how people discover and experience audio and media. The hard problems ahead — in music, in podcasts, in books, in video, in live, and in things we haven’t built yet — we’re going to keep building the technology to solve them.”

The company’s operating income rose 47% to $834 million. At the end of the fourth quarter, there were 7,323 full-time employees globally.

Spotify’s ad-supported revenue was down 4%, with the company looking at a partial “offset by softness in pricing” for its music advertising. Its podcasts’ expansion was led mostly by sponsorships. But the revenue was similarly “offset by optimization of our podcasting inventory.”

Just in the last few months, Spotify has focused heavily on its podcasting services — in part by opening a new Hollywood studio, expanding creator monetization programs and premiering select video podcasts on Netflix in a new partnership.

On the music side, the streaming platform previously reported that it paid out more than $11 billion to the music industry last year. That sum was the “largest annual payment to music from any retailer in history,” according to Spotify.

When the music streaming business model was first introduced, there was controversy about how much artists would earn from streams. But the company said independent artists and labels accounted for half of all royalties.

Founded in 2006, the company maintains a large presence in L.A.’s Arts District. Over the last two decades, it has become the world’s most popular audio streaming subscription service. Beyond its music library, it now reports having more than 530,000 video podcasts and over 500,000 audiobooks in English-language markets.

Starting this month, Spotify also raised its prices for premium users to $12.99. For the first quarter of 2026, the company expects an increase of 8 million monthly active users, bringing its total closer to 759 million users and a smaller, 3-million bump in paying users. The company projects total revenue to stay consistent at around $5.3 billion.