The Creation of Spotify Wrapped: Insights from Spotify Leaders on Its Year-Long Development

As December arrives, it's not only a time for festive treats like candy canes and making snow angels—instead, it also serves as a moment to reflect on how much you've streamed artists like Lady Gaga.

Spotify Wrapped, a cherished feature on the platform, allows more than 713 million users to reminisce about their listening habits annually. It has become so iconic that it dominates social media for an entire day each year and has inspired numerous imitations.

What initially required just a small team has now expanded to involve scores of designers, engineers, and data specialists, as the demand for Wrapped has soared. By the time each December's Wrapped is released, work on the next edition is already well underway.

Over the years, Spotify Wrapped has diversified its offerings by exploring different content types, starting with podcasts and now including audiobooks. It has also introduced fresh elements known as 'stories,' which serve as slide presentations. While installations like the Sound Towns of 2023 achieved outstanding success, other features received mixed reactions.

The impact of Spotify Wrapped on the company's fortunes is substantial. Spotify's co-president, Alex Norström, indicated during a quarterly earnings call that Wrapped has been instrumental in business growth, actively engaging 245 million users in the year 2024 alone.

In an exclusive with Business Insider, three Spotify executives revealed the intricate, ever-expanding operation behind Wrapped. The initiative relies heavily on a year filled with thousands of exchanged messages and meetings, as shared by the executives.

According to Matthew Luhks, Spotify's senior director of global marketing, Wrapped represents the most anticipated and closely scrutinized campaign every year. From a marketing aspect, it is absolutely pivotal for Spotify.

The Unfolding of Wrapped

As soon as Wrapped is live, Spotify's team diligently monitors social media activity and feedback.

Laura Kirkpatrick, who handles channel marketing at Spotify, mentioned that they scour trends and community reactions. Her current favorite artist on Spotify is Blood Orange. The social media division, one among numerous teams, works to gauge audience reception globally.

The operation involves sizable manpower with hundreds of employees on alert, making it a mammoth organizational effort.

Analyzing After the Launch

Once Wrapped is released, Spotify embarks on a thorough assessment, considering what succeeded and what fell short over the year.

Last year, users heavily criticized Wrapped, labeling it monotonous and imprecise. Although a record-breaking one-third of Spotify users interacted with Wrapped in 2024, reactions varied widely. Some felt a sense of dissatisfaction.

Feedback from users about the incorporation of AI, such as the Wrapped AI Podcast, contributed to this response, prompting Spotify to rethink its approach and withdraw the feature for 2025.

Luhks confidently stated that every creative aspect of Wrapped results from human ingenuity, emphasizing the company’s reliance on its skilled workforce rather than machines.

Innovation and Data-Centric Planning

Following these evaluations, the team revises and brainstorms new ideas. Key to this innovation are data scientists who craft the algorithms selecting users' top five lists.

Take, for example, the song 'What's Up?' by 4 Non Blondes, which saw a resurgence thanks to TikTok. Streaming stats alone wouldn't necessarily make its album a top-ranking choice.

Lauren Saunders, Spotify’s personalization director, explained how data is meticulously curated to genuinely reflect users’ listening histories.

This comprehensive data review ensures rankings, like top songs and artists, are based on rigorous analysis. Such diligence led Saunders and her team to maintain previously successful methodologies.

Recognizing Wrapped's critical role, top-tier executives stay involved throughout its creation. Features such as Wrapped Parties allow leadership to engage directly with the product, enhancing its development.

Evolving User Interaction

As Wrapped continues to grow, the patterns in how users engage with and share Wrapped insights have transformed.

Originally known for widely circulated top five lists across platforms like Instagram, current social media trends have shifted towards more intimate sharing with smaller audiences.

Luhks observes an increase in private group sharing rather than large-scale broadcasts, indicating a shift in digital communication channels.

Offline Listening and Community Building

For those disengaging from digital devices, Spotify has orchestrated 50 real-world pop-up events, such as grand displays at locations like Union Square in New York or themed parades in Paris.

The mission behind these physical gatherings is to foster community by connecting fans outside of the online realm.

Facing Rival Streamers

While Spotify isn't alone in the music streaming universe, with contenders like Apple Music's Reply entering the fray, it is confident.

On an earnings call, CEO Daniel Ek attributed substantial growth in Spotify’s user base to the success of Wrapped, continually enhancing the company’s performance metrics.

Despite similar campaigns from competitors, Luhks maintains that Wrapped sets a benchmark in personalized music experiences.