One More Turn after the Algorithmic Turn? Spotify's Colonization of the Online Audio Space

In the last decade, development of algorithmic recommendation systems has constituted the main competitive factor between music streaming services. In this article, we identify how a new turn, labelled 'the auxiliary services phase', is rising to prominence. We analyze Spotify's move from being a mere music distributor, to becoming a general provider of audiovisual content - involving investments in podcasts, vodcasts, audiobooks, etc. - where expanded service offerings and exclusive content development constitute increasingly important platform strategies. Although this turn empowers innovation, it is worrisome from a music industry perspective as it challenges power balances between music industry and platform actors.

Automated summary

In the past decade, the development of algorithmic recommendation systems has been the main competitive factor for music streaming services. This article identifies a new trend called 'the auxiliary services phase', which is becoming increasingly prominent. The article analyzes Spotify's transformation from a mere music distributor to a provider of audiovisual content such as podcasts, vodcasts, and audiobooks, and highlights the importance of expanded service offerings and exclusive content development as platform strategies. While this transformation promotes innovation, it also raises concerns from the music industry's perspective as it challenges power dynamics between the music industry and platform actors.