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Spotify Technology SA announced several new initiatives — from concert ticket perks to a major AI-generated music licensing deal — that the Swedish audio streaming company said will help fuel growth over the next four years.

At the first investor day led by new co-chief executives Gustav Söderström and Alex Norström, Spotify outlined a vision revolving around features that will allow people to personalize their listening experience, whether with music, podcasts, audiobooks or working out. Investors liked what they heard, pushing Spotify shares up as much as 18% over the course of the presentation.

Spotify addressed one of Wall Street’s biggest concerns about artificial intelligence by announcing a major new licensing deal with Universal Music Group NV. The agreement will let Spotify launch a tool to let fans create covers and remixes of their favorite songs from artists and songwriters who opt in. Powered by generative AI, the tool will be available as a paid add-on for Spotify Premium users. It will open up additional revenue streams for Spotify and create a new source of income for artists and songwriters on top of what they already earn on the platform, according to the companies.

Spotify has been working with the music industry on ways to harness the power and consumer interest in AI without violating artists’ rights. Last October, the company announced an agreement with the biggest record labels to use AI in a “responsible way,” but didn’t specify at the time what those tools would look like.

“This era of generation doesn’t need to threaten the future of music,” said Charlie Hellman, Spotify’s head of music. “Because we built the system legal, trusted and aligned, we can make sure that the value flows back to the people who created it.”

In another big announcement, the company laid out plans to work with Live Nation Entertainment Inc. to offer Spotify subscribers the option to purchase two tickets to their favorite star’s concert before they go on sale to the general public. The move could help resolve some of the issues fans have had in beating ticket resellers to face-value tickets, while encouraging customers to stay on as subscribers even as Spotify raises monthly fees.

Fans have long complained about the ticketing process for live performances, which often pit people against bots and scalpers, leading to high prices and sold-out shows.

“It’s frustrating for fans,” said Rene Volker, head of live events. “It’s frustrating for artists too, who look out at a crowd and wonder, are the fans who built my career actually here?” The new “Reserved” perk is designed to relieve some of that tension. “No racing bots, no chasing around online for presale codes. Just two tickets held for you,” she said.

The presentations Thursday were designed to comfort investors and prove that Spotify can still innovate. Wall Street has been skeptical that the company can rein in costs while staying ahead of competitors, particularly as it relates to AI. Those concerns have weighed on shares this year, sending them down 25% through Wednesday’s close. While the company makes most of its money through subscriptions, the executives sought to reinforce the idea that they have other levers to pull in order to generate sales beyond monthly fees and that people are willing to spend more for certain features.

The company outlined its growth targets through 2030, including a compound annual growth rate in the mid teens, a gross margin of 35% to 40% and an operating margin above 20%. Spotify remains committed to its long-term goal of 1 billion subscribers, $100 billion in revenue and over 40% in gross margin, the executives said.

Spotify sees its podcast and audiobook features as complementary to music and said the combination of the multiple verticals has helped broaden its community and convert users from free listeners to paid subscribers. Today, more than 500 million people have streamed a video podcast on Spotify, up nearly 50% from a year ago. And in just a few years, Spotify has captured about 20% of the audiobooks market in the US, executives said. People who use all three verticals — music, podcasts and audiobooks — are engaging with Spotify almost every day of the month, according to the company.

Giving people the tools to personalize their listening experience helps keep them in Spotify’s universe — creating what executives described as the “all day user.”

Personal Podcasts, for example, lets people write a prompt in the Spotify app and AI will create a unique podcast in response.

“We see this much more as a daily brief and a recommendation engine than something that would replace you listening to one of your favorite podcasts,” Söderström said in an interview. He noted that 60% of users in mature markets for Spotify don’t yet listen to podcasts, so features like Personal Podcasts could get them to dive into the medium.

The company said its podcast business has been profitable for two years.

Spotify’s Audiobook+ tier gives listeners more than their allotted 15 hours of audiobook listening per month for an additional fee. It has 1 million subscribers and is on track to generate $100 million in annualized revenue, the company said. To capitalize on the demand, Spotify will start selling even more audiobook hours to super users. Additionally, it will allow podcasters to offer memberships, so subscribers can access special episodes and other content. Spotify will take an undisclosed slice of revenue from the memberships.

Carman writes for Bloomberg.

Avid Technology, the editing software company, is the latest entertainment industry player to introduce AI into its toolbox.

The company behind industry-standard platforms Pro Tools and Media Composer said it is entering a multiyear partnership with Google Cloud.

The goal is to implement both generative and agentic AI so that users can turn the “mostly manual process into an intelligent, AI-assisted experience,” Avid said in a statement Thursday morning.

“The primary bottleneck in Hollywood is manual labor [in editing] and managing thousands of hours of high-risk footage,” Avid Chief Executive Wellford Dillard told The Times. “This isn’t us just adding a new tool. It’s going from static files sitting on hard drives, to living data that understands its context.”

Google’s Gemini models and Vertex AI will be embedded directly into Avid’s processes, offering customers a chance to accelerate their editing time. Avid’s Media Composer, the editing system used on most professional film and TV productions, will now include a Gemini extension that could enhance metadata and generate B-Roll.

The company said that, overall, using AI on its platforms enables systems to understand the context of every file — allowing users to describe what they need based on visual movements, on-screen dialogue and emotional cues.

Dillard said that when someone uses Media Composer for editing, it can often be frustrating to click in and out of the application in search of the right shot buried within hours of footage. Now, he said, clients can describe the shot to AI, which could find it faster.

Anil Jain, global managing director at Google Cloud, said that these tools can do both simple functions like tweaking a scene’s background, or achieve more complex tasks, like creating promotional material.

“Most storytellers don’t get excited about putting together a promo, but if they could leverage AI to help do it a lot faster, then it becomes more interesting, gets it done and opens up the possibility of more creative time,” Jain said.

Avid, founded in 1987, is based in Burlington, Mass., and has since established itself as a pioneer in digital audio and video editing software. The company said its software was used to edit 87% of this year’s Oscar-winning productions, including the movies “K-Pop Demon Hunters” and “One Battle After Another.”

Avid is one of the many media companies that has recently incorporated AI into its services. In March, Netflix acquired Ben Affleck’s AI filmmaking company, Interpositive. Disney invested $1 billion into OpenAI’s now shuttered Sora platform. Even in the music industry, the “Big Three” labels have inked individual deals with AI startups like Udio, Klay and Suno — after suing a few of the same companies for copyright infringement.

Ramesh Srinivasan, a professor of information studies at UCLA, said these kinds of deals are the “new normal” and that “almost every single industry is being sort of eaten up by the Pac-Man of AI.”

But he said he’s not sure that this kind of AI will only be used for mechanical tasks.

“Editing is a task that involves creativity and human artisanship. An editor is not just someone who mechanically reproduces a number of steps. They have a sense of storytelling in mind,” said Srinivasan. “In terms of AI-created content, the initial research is showing that it is flattening creativity. It’s putting out the dominant patterns that it can copy, rather than reflect, the specific diverse and creative ways we can write, or edit.”

To Dillard, Avid’s CEO, incorporating AI is a way to ensure that creators can make enough content to keep up with audiences’ increasing demands.

“The demand for content is almost insatiable, and dollars are limited. This work can help compress those production timelines [and make] more content,” Dillard said. “Our hope is that we’re actually enabling the world, within the same budget constraints that the studios have today. You’re producing more content, and you are also opening the doors for smaller production houses to be able to produce more content competitively.”