Gustav Gyllenhammar of Spotify: “Nearly a Quarter of Our Global Subscriber Base is in Latin America”

Gustav Gyllenhammar, VP, Markets and Subscriptions at Spotify, with over a decade at the company, shared insights today at the Cannes Lions International Festival of Creativity on how content and music streaming have come to life online, and how the connection between fans and creators is fostered. “This is obviously built on our global platform and technology, with all the opportunities that entails. But also, it’s a way to connect people. We use technology to connect creators with their fans around the world and offer a service that everyone loves.”

Spotify reaches 670 million users globally across 183 markets with a personalized version for each, made possible only through technology. “But I think what we do so well is mix that with human creativity, editing, and curation done by real people all around the world,” Gyllenhammar stated.

Spotify Wrapped: Data, Creativity, and Human Connection

Spotify Wrapped, launched in 2015, began as a simple year-end summary for users. “Like many innovations, it’s built upon over time. We’ve incorporated more and more creativity and content,” explained Gyllenhammar. “So today, we not only offer Spotify Wrapped to consumers around the world, but all creators on the platform also get their Spotify Wrapped and have the opportunity to understand their audience, what their fans have been doing throughout the year, and connect directly with them by sending video messages.”

The executive emphasized that for Spotify, data and technology, in both content and marketing, are merely tools to connect people. “What truly makes our platform and our service so appreciated by both creators and consumers is the human connection they can establish.”

Spotify continues to explore diverse ways to leverage AI in its products. “We help advertisers deliver audio ads at scale by using generative AI to create and adapt messages to consumers around the world.” Other consumer-facing AI applications include AI DJ and AI Playlist, which enhance interaction and provide content tailored to daily life.

Sports, Music, and Global Cultural Impact

Gyllenhammar highlighted sports and music as two significant pillars of culture for consumers worldwide. “We are very proud to have partnered with FC Barcelona, the iconic Spanish football club, for 3 or 4 years now. And, obviously, we have been able to demonstrate how when sport and music combine, they create wonderful connections for creators and consumers.”

He cited examples of uniting artists with their FC Barcelona partnership, such as Rosalía from Spain or Karol G from Colombia. “We see that this generates more consumer love for our brand and for the artists. So when it comes to the World Cup, we’re very excited to be part of the conversation for such an iconic moment for the Americas. With the World Cup being in three countries for the first time and the iconic Estadio Azteca in Mexico, obviously part of that.”

Subscription Model and Latin American Growth

When Spotify launched in the Latin American market in 2013, “paying for music in the region was quite unknown,” Gyllenhammar noted. “So we’ve seen that freemium is the foundation of Spotify’s business model, meaning users can experience the full platform and its creativity for free. But as people get more engaged and fall in love with the platform, more and more consumers pay for the service.”

This model has led to explosive growth for the music industry in Latin America, “which has been phenomenal for creators in the region. Nearly a quarter of our global subscriber base is in Latin America, something unheard of for any other global subscription service.”

Gyllenhammar believes this also demonstrates the power of reinvesting in the region. “We invest in our offices and some of our most emblematic controlled properties.” In Latin America, they operate Casa Spotify locations in both Bogotá and Buenos Aires. “These are permanent event spaces where we bring together podcasters, advertisers, consumers, music creators, and others, almost weekly or several times a week, with people from Latin America’s creative industries. The fact that we have both free and paid platforms also means we have a model that drives advertising growth in the region, as the time consumers spend on the platform creates opportunities to connect with them.”