Insyte Weekly: Spotify Paid Artists $10 Billion, SA's Retail Industry's Resilience, and more

This was an interesting week in the business world. Here’s a breakdown of some of the week’s top stories.

Media & Entertainment

As reported by Kyle Wiggers, Microsoft is exploring 3D gaming experiences for Copilot, its AI-powered chatbot, as indicated by a new job listing for a senior software engineer specializing in 3D rendering engines like Babylon.js, three.js, and Unity. This aligns with Microsoft's broader push to integrate gaming into Copilot, demonstrated in February with the introduction of Muse, an AI model trained on Ninja Theory’s Bleeding Edge to create AI-generated gameplay. Additionally, Microsoft has been embedding Copilot into games like Minecraft, where it assists players with in-game tasks. The company is also experimenting with character-based AI interactions, featuring animated characters designed to engage users with sound effects and animations. These initiatives reflect Microsoft’s ambition to make AI a more interactive and immersive part of gaming.

Spotify’s 2024 Loud & Clear report highlights the continued growth of the music streaming economy, record-breaking payouts, and the increasing global reach of artists. With over 500 million paying subscribers worldwide, Spotify paid out $10 billion to the music industry in 2024 alone, marking the largest annual contribution by any company. This financial boom has supported a more diverse and borderless music landscape, with artists recording in over 50 languages and a growing number of women earning over $1 million annually. Additionally, more than half of artists generating at least $1K in royalties earn the majority of their revenue from international listeners, showcasing the power of global streaming. Independent artists and labels are also thriving, collectively earning over $5 billion in royalties. With $60 billion paid out since its inception and increasing music publishing payouts, Spotify continues to shape the future of music, fostering innovation and deeper artist-fan engagement.

According to Sarah Perez, Spotify is expanding its audiobook efforts with a new publishing program that allows authors to submit short-form stories for audiobook production. The company will handle the production and distribution of selected works while offering authors both an advance and royalties. Spotify is specifically looking for stories in romance, mystery/thriller, and sci-fi/fantasy genres, with an emphasis on cross-genre works like “romantasy” and psychological thrillers. Submissions must be novelettes of 10,000 to 20,000 words in English, with authors retaining the audio rights. This move positions Spotify as a stronger competitor to Audible, which already offers shorter exclusive audiobooks through its Originals program.

Edtech

Microsoft and LinkedIn’s 2024 Work Trend Index highlights the growing demand for AI skills, with 66% of leaders unwilling to hire candidates without them. To support this shift, Microsoft Copilot Chat—available with A1, A3, and A5 licenses—offers an intuitive AI assistant designed to enhance K–12 education according to Mike Newman. Educators can use Copilot to streamline lesson planning, integrate advanced frameworks like Universal Design for Learning, and personalize student learning experiences. For school staff, the paid version, Microsoft 365 Copilot, boosts productivity by summarizing meetings, documents, and emails. Additionally, Copilot Studio enables educators to create AI agents that assist with instructional initiatives. As AI adoption accelerates, Microsoft Copilot provides schools with a secure, efficient tool to enhance both teaching and administrative processes.

Google’s AI tool, Gemini, seamlessly integrates with Docs and Slides, making it easy for teachers to incorporate into their daily workflows according to a review by Rachelle Poth. Educators can use Gemini to plan lessons, create supplemental resources, and offer personalized student support, while students can leverage it for research, tutoring, and creative brainstorming. Gemini streamlines lesson planning by generating detailed plans, exercises, and project ideas in minutes, saving teachers valuable time. It also enhances student engagement by tailoring content to individual learning needs, providing explanations, interactive quizzes, and differentiated reading materials. With broad browser support and Google Workspace integration, Gemini offers an accessible, AI-powered tool for modern classrooms.

Fintech

As reported by Ilona Volkova, Fintech is driving financial inclusion for women worldwide by breaking down traditional barriers and providing access to banking, investment tools, and entrepreneurial support. In Europe, startups like Germany’s ellexx and the UK’s Starling Bank are closing the gender wealth gap through tailored financial solutions and initiatives promoting economic and domestic equality. In Africa, mobile money platforms like M-PESA have transformed women's financial independence, lifting thousands out of poverty, while Chipper Cash enables female entrepreneurs to engage in cross-border trade. Latin America is also making strides, with Brazil’s Nubank prioritizing women’s financial needs, fostering inclusivity, and closing literacy gaps. Across the globe, fintech is reshaping economic opportunities for women, driving empowerment, and unlocking new market potential.

According to Philipp Reichardt, Airwallex, a global financial technology platform, has launched embedded finance tools designed for the creator economy, which is expected to reach a US$525 billion valuation by 2030. These tools aim to simplify complex financial tasks such as global payments, tax management, and financial tracking. Platforms can now integrate customizable financial services, including automated tax form collection and filing, initially supporting US 1099-NEC tax filings. Early adopter PartnerStack, a platform connecting B2B SaaS companies with affiliate networks, uses Airwallex to streamline payments and tax reporting. The tools also offer flexible, PSP-agnostic payment acceptance, multi-currency wallets for creators to manage funds, and fast global payouts in over 170 markets. Additionally, platforms can issue branded multi-currency cards to creators, simplifying local and international purchases and providing easier financial reconciliation. Philipp Reichardt of Airwallex emphasized that the goal is to remove financial complexity, allowing creators to focus on their work without administrative burdens.

AI

Google DeepMind has introduced two advanced AI models based on its Gemini 2.0 framework to enhance robotics: Gemini Robotics and Gemini Robotics-ER. These models aim to bring AI into the physical world, enabling robots to perform a broader range of real-world tasks through "embodied" reasoning. Gemini Robotics is a vision-language-action (VLA) model designed to control robots with physical actions, offering significant advancements in generality, interactivity, and dexterity. The model can generalize across new situations and objects, respond to conversational instructions, and perform complex tasks requiring fine motor skills, such as origami folding. It is also adaptable to different robotic platforms, including bi-arm systems and humanoid robots like Apptronik’s Apollo. Gemini Robotics-ER, on the other hand, enhances spatial reasoning and connects with low-level controllers to improve tasks like object manipulation. This model excels in tasks like grasping and moving objects, offering up to three times better success rates than previous models. Gemini Robotics-ER is designed to help roboticists build custom programs, offering capabilities like perception, state estimation, planning, and code generation. These innovations bring robotics closer to real-world applications, offering robots the ability to adapt to dynamic environments and collaborate effectively with humans in various settings.

Tourism

As reported by Isaam Toutate, a recent United Nations World Tourism Organization (UNWTO) report highlights Morocco as an exceptional destination for tourism sector investors, citing its strategic geographic location, robust economic environment, and foreign direct investment (FDI) policies. Morocco's tourism industry has experienced significant growth, attracting $2.2 billion in FDI between 2014 and 2023 and $2.6 billion in hotel infrastructure investments from 2015 to 2024. In 2024, Morocco saw 17.4 million tourists, marking a 35% increase from 2019, and the sector’s contribution to GDP rose from 3.7% in 2020 to 7.3% in 2023. The country’s appeal is bolstered by its proximity to Europe, access to a market of 2.5 billion consumers, and rich cultural and natural assets, including nine UNESCO World Heritage sites and extensive infrastructure. With a growing economy, projected growth of 4% in 2025, and a stable financial environment, Morocco continues to attract tourism investments. The sector has seen a 60% increase in accommodation capacity since 2012, with ongoing support from the Moroccan Tourism Engineering Company.

According to Social News, South Africa is leveraging its G20 presidency, which began on December 1, 2024, to promote national priorities, strengthen South-South cooperation, and boost sectors like tourism, transport, hospitality, and entertainment. Deputy Minister Thandi Morake highlighted that the G20 presidency represents the country's largest national project, which is expected to create direct and indirect jobs and bring global visibility across all nine provinces. The 2025 G20 Leaders' Summit will offer South Africa an opportunity to showcase its culture, heritage, and advancements in technology and industry, potentially encouraging private visits from delegates. South Africa is also using its presidency to spotlight the African Union’s Agenda 2063 and champion the development interests of the Global South, including food security, industrialization, and job creation. The country aims to drive inclusive growth, address poverty, and strengthen governance. Limpopo Province, in particular, is ready to engage globally and capitalize on the opportunities provided by the G20 presidency. The outreach program, which included diplomatic representatives from over a dozen countries, aims to raise public awareness about the potential benefits of the G20 presidency for local communities.

Retail

NIQ South Africa's State of the Retail Nation report for 2024 reveals moderate growth in retail sales, driven largely by price increases rather than higher consumption. South African consumers spent nearly R637 billion on fast-moving consumer goods (FMCG), marking a 3.4% year-over-year growth. The Technology & Durables (T&D) market saw flat growth, with a slight 1.8% increase, largely due to a 2% decline in telecom sales, as the market faced smartphone saturation. However, certain sectors like washing machines saw strong performance. The festive season boosted FMCG sales, with Q4 growing by 4.8%, totaling R177 billion, driven by liquor, personal care, and ambient foods. Private label brands outpaced the overall market with 7.1% growth. In the T&D sector, Black Friday sales didn’t fully counteract the overall decline, with the telecom segment still underperforming. Despite discounting, some premium segments showed growth, indicating that certain consumers remain insulated from broader economic challenges.

The South African fast-moving consumer goods (FMCG) retail sector showed resilience and growth in 2024, driven by strategic expansion and diversification, according to the Corporate Retail Comparative Report by Trade Intelligence. As cited by Seth Thorne, The six major FMCG retailers—Shoprite, SPAR, Pick n Pay, Woolworths, Clicks, and Dis-Chem Pharmacies—expanded significantly, opening over 10,000 stores in the past five years, with a 24.2% increase in store footprint. This expansion included non-grocery categories like pet care, baby products, and clothing. Food inflation eased in the second half of 2024, supporting volume growth, with Shoprite, Clicks, and Boxer seeing positive performance, while Woolworths Food and SPAR Retail Grocery showed improvement but remained negative. Shoprite led with a turnover of R241 billion, growing 12%, and Checkers outperformed Woolworths Food for the fifth consecutive year. Discount retailers, including Boxer and Shoprite's Usave, gained traction as consumers sought savings in a tough economy, with 76% of shoppers opting for promotions and 63% switching to store brands. The sector plans R15.7 billion in capital expenditures for FY2025 to support store expansion, IT infrastructure, and sustainability initiatives, alongside the growth of over 330,000 employees.

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