Insyte Weekly: Spotify's latest earnings report, AI changing Higher Education, and more

Media & Entertainment

Spotify closed the fourth quarter of 2024 on a strong note, surpassing key performance metrics and marking its first full year of profitability. The company's monthly active users (MAUs) grew by 12% year-over-year (Y/Y) to 675 million, while subscribers increased by 11% Y/Y to reach 263 million. Revenue also saw significant growth, rising 16% Y/Y to €4.2 billion, with a gross margin improvement of 555 basis points to 32.2%. Additionally, operating income climbed to €477 million, reflecting Spotify’s improved financial health and operational efficiency. Founder and CEO Daniel Ek expressed excitement about 2025, highlighting the company’s focus on long-term impact, efficiency, and speed. He emphasized that Spotify will continue making strategic investments to enhance the user experience, sustain growth, and drive creativity worldwide.

Edtech

As reported by Cayden McMillian, a group of CDW interns from various U.S. universities conducted a 10-week research project in the summer of 2024 to assess how well their institutions were preparing students for an AI-driven future. The study involved university research, a student survey, and data analysis, revealing that while 90% of students were aware of AI, only one-third felt comfortable using AI tools like ChatGPT, Microsoft Copilot, and Google Gemini. Additionally, 65% had not taken an AI-specific course, and only 3% felt confident that their education would help them secure an AI-related job. The project gained attention at the UNC Cause Annual Conference, where universities and tech companies, including Apple, showed interest in student perspectives on AI. The findings highlight the need for universities to expand AI education through courses, workshops, and certifications, which could enhance student success and attract prospective students seeking career-ready skills.

According to Adam Stone, as generative AI gains traction in higher education, universities are integrating AI tools within their existing technology ecosystems to enhance accessibility and security. Microsoft Copilot and Google Gemini, now available through Microsoft 365 and Google Workspace for Education, are providing faculty, students, and staff with built-in AI capabilities. At the University of South Florida (USF), leaders see Copilot as a tool that levels the playing field by offering AI-powered assistance in classrooms and administrative tasks, such as meeting summaries and document drafting. Rice University is piloting Google Gemini to evaluate data protection and compliance with FERPA regulations, with potential applications like enhancing OpenStax's free college textbooks through AI-generated content tailored to students' learning styles. Similarly, Carnegie Mellon University values AI tools for their customizable security parameters, allowing institutions to set contractual terms to protect intellectual property and sensitive data. Across campuses, AI is being used for personalized learning, productivity enhancements, and administrative efficiency, signalling a shift toward more integrated and secure AI adoption in higher education

Tourism

As reported by Femi Akinyemi, the Nigerian government has unveiled an ambitious plan to transform the creative and tourism sectors into major economic drivers, targeting a $100 billion contribution to GDP. Announced by Minister Hannatu Musawa, the initiative centres on the Creative and Tourism Infrastructure Corporation (CTIC), a public-private partnership aimed at developing critical infrastructure to support art, culture, and tourism. The plan includes creating over 2 million jobs, revitalizing key cultural and tourism sites like the Yankari Game Reserve, and establishing major projects such as Abuja Creative City, a national museum in Abuja, and a 100,000-seat National Arena. Additionally, the government plans to expand Nollywood’s global presence with dedicated production hubs and develop 5,000 new cinema screens nationwide. Musawa emphasized that while Nigeria’s creative output—from Nollywood to Afrobeats—is globally recognized, a lack of infrastructure has hindered economic growth. By securing both domestic and foreign investments, the government aims to unlock Nigeria’s cultural potential and position the country as a global hub for entertainment and tourism.

Retail

Citing data from the Pietermaritzburg Economic Justice and Dignity (PMBEJD) group, Malcolm Libera reported that Gauteng has become the most expensive province for groceries in South Africa, with Johannesburg leading as the priciest city at the start of 2025, surpassing both Durban and Cape Town. The cost of a household food basket (44 essential items) reached R5,433.70 in January 2025, reflecting a 2% annual increase. Johannesburg’s food basket is the most expensive at R5,507.38, exceeding the national average by R73.68. In comparison, Cape Town has the lowest food prices among major metros at R5,368.58, while Durban stands at R5,451.07. Despite a slowdown in food inflation from 5.1% in June 2024, grocery costs remain a major financial burden, particularly for lower- and middle-income households. The report notes that 30 out of 44 essential food items saw price hikes, with five experiencing double-digit inflation. Over the years, grocery prices have surged alarmingly. A 12-item grocery basket that cost R93.16 in 1995 now costs R728.24, marking a 682% increase—far exceeding the general inflation rate of 4.14%.

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