It’s that time of year again; trying to anticipate changes over the next months and the main trends for our sector. We’re not complaining, many major transformations could happen in 2025, let’s dive in together.
#1. Spotify: From music to Multi-format
Over the years, Spotify has transformed from a simple music streaming service into a multi-format content platform, prioritizing autonomy and profitability over its original, music-focused model. By progressively including podcasts, audiobooks, and generative AI content, Spotify has reduced its dependence on music rightsholders, shifting from merely distributing music to curating a global user experience (as they put it themselves).
Key innovations like algorithmic curation, Discovery Mode, and direct licensing deals have empowered Spotify to reshape the money flow in its ecosystem, turning rightsholders into its customers. While music remains central, Spotify’s long-term strategy emphasizes content diversity and personalized engagement—positioning itself not just as a music service but as a platform delivering tailored audio-visual experiences.
As Spotify prepares for its next phase, its focus is clear: more non-music content, AI-driven programming, and a seamless, algorithm-led user journey.
#2. A quick insight into 2025
A quick overview of potential trends for 2025 was released in Kill The DJ this week! The music industry in 2025 is set for a rocky year as streaming platforms face consolidation and new competition. Smaller services are expected to merge, be acquired, or even shut down, all while Netflix is rumored to be entering the music streaming space. Plus, AI’s role in music is expanding further, with the potential rise of AI-powered pop stars and licensed artist voices. Record labels are likely to collaborate more with AI companies to stay competitive, blending technology with artistry in groundbreaking ways. Meanwhile, data-driven A&R is becoming the standard for discovering talent, though concerns remain about sidelining raw creativity in favor of algorithmic trends. Phew.
Economic challenges are hitting grassroots venues and smaller festivals hard, due to rising costs and shifting audience behaviors. However, niche-focused events may offer a path forward for promoters. Amid this turbulence, there is a revival of genres as listeners seek raw emotion and authenticity. With over 110,000 new tracks released daily, even global stars like Taylor Swift are catering to increasingly segmented audiences. 2025 promises to be a year of reinvention and innovation, reshaping the music industry in unpredictable ways.
#3. Tough beginning of 2025 for Napster
Napster has started 2025 on shaky ground, facing reports of delayed royalty payments to distributors and record labels. Some rights holders claim payments are a few months behind, and others report delays exceeding a year. The platform, which accounts for less than 1% of overall streaming income for many rights holders, still represents meaningful payouts for smaller artists and labels. Frustration is growing as some distributors consider pulling catalogs or withholding new releases, with litigation being a last resort due to its high costs. Napster CEO Jon Vlassopulos has declined to comment on the situation.
Napster’ss current iteration is led by Vlassopulos and owned by Hivemind Capital Partners and cryptocurrency firm Algorand. Despite efforts to reinvent itself, Napster's ongoing financial struggles and lack of communication have left rights holders dissatisfied, casting doubt on the platform's stability in the competitive streaming landscape.
#4. Growing speculations over Sonos’ future
We knew about a potential acquisition of Sonos following leadership changes and a drop in market value to $1.7 billion from its pandemic-era peak of over $5 billion. The departure of their CEO and CPO, coupled with ongoing struggles like a problematic app rollout and declining revenue, has fueled rumors about the company's future. Bloomberg's Mark Gurman has identified Spotify and Amazon as the most likely suitors. Amazon, with its Echo device lineup, could integrate Sonos' premium audio technology, though regulatory hurdles may arise. Spotify, on the other hand, could use the acquisition to enter the hardware market seamlessly, an area it has struggled to break into despite prior efforts like the Car Thing.
Other potential buyers include Samsung, Roku, and even larger tech firms like Apple or Google, though they are seen as less likely candidates due to strategic priorities. While a sale could bring new opportunities, some argue that remaining independent would ultimately be the best outcome for consumers. Sonos continues to face challenges, including an 8% revenue decline in fiscal Q4 2024 and workforce layoffs, but its future remains uncertain.
#5. Another lawsuit against Suno
AI music generator Suno faces a new lawsuit from GEMA, the German licensing body representing over 95,000 members and millions of global rights holders. GEMA accuses Suno of infringing copyrights by using protected recordings of iconic songs to train its AI tools without authorization. GEMA also alleges that Suno’s AI generates audio content that closely mimics these works, undermining the livelihoods of human creators. This legal action follows similar accusations from major record companies and highlights the growing scrutiny of generative AI in the music industry.
GEMA's leadership has criticized Suno and other AI companies for exploiting copyrighted works without consent or compensation, calling for stricter regulations and fair licensing practices. The lawsuit, filed in Munich, is part of GEMA’s broader push to ensure that human creativity remains economically viable in an era increasingly dominated by generative AI tools. The case underscores ongoing tensions between tech innovation and copyright protection in the music world.
