Why is Spotify Wrapped Loved, Hated, Derided and Copied? Because It’s Effective.  

If it seems like everybody is talking about Spotify Wrapped, the streaming service’s data-driven annual recap of listening habits, it’s because everybody is talking about Spotify Wrapped. That says a lot about its effectiveness and its value to the company.  

The streaming platform’s personalized year-end recap is unmissable this time of year. Mashable began prepping its readers back on Nov. 19. A week later, Spotify heightened expectations by advising users to update the Spotify app to the latest, Wrapped-ready version. When Wrapped finally appeared on Wednesday (Dec. 4), there was an onslaught of media coverage. Billboard even got into the Wrapped coverage, revealing Chappell Roan’s top artists and songs on Spotify in 2024 (Ariana Grande and Heart’s “Barracuda,” respectively).   

With so much media coverage, some of it is bound to carry a grousing, annoyed tone. “Hate your Spotify Wrapped?” Rolling Stone asked, “You’re not alone.” “Sorry, parents,” The Washington Post lamented, “it’s actually your kids’ Spotify Wrapped.” Vogue turned Wrapped into a frank self-examination in an article titled “I love Spotify Wrapped so much I hate it.” For people whose Spotify Wrapped “suck[ed],” Pocket-lint suggests ways to “fix it” in 2025. The Huffington Post’s compilation of the “funniest” tweets about Wrapped was filled with only mildly humorous complaints.  

In contrast, articles about Wrapped’s peers came and went without anything close to the same level of media hullabaloo. The annual recaps of Apple Music, Amazon Music and YouTube Music received basic coverage at mostly tech-oriented publications but didn’t elicit the kind of longwinded pop culture essays that Wrapped conjures up every year. Apple Music Replay received run-of-the-mill articles such as “Apple Music’s yearly recap is finally available in the app” at tech news site The Verge. When TechCrunch covered the launch of Amazon Music’s 2024 Delivered, the headline referred to it as Amazon’s “take on Spotify Wrapped” lest nobody know what they were talking about. YouTube Music Recap launched on Nov. 25 to little media coverage.  

For its part, Spotify contributed to the media overload by building a 2024 Wrapped microsite and posting 10 Wrapped-related press releases on launch day. Wrapped itself introduced new innovations in 2024, including a personalized Wrapped podcast featuring two AI hosts and the Your Music Evolution Playlist, a personalized playlist that tracks a user’s different musical interests and phases throughout the year. Wrapped has become such an important event that Spotify hosted a pre-release press briefing that featured talks by executives across the company. As Glenn McDonald, a former Spotify software engineer and author of the book You Have Not Yet Heard Your Favourite Song: How Streaming Changed Music, told Billboard via email, “nothing else they do gets as much marketing/branding energy put into it.”  

Wrapped especially shines in the awareness it attracts on social media. At the end of every Wrapped recap, Spotify offers personalized badges that flood X, Instagram and TikTok — the latter two benefitting from integrations announced in November that make it easier to share content. In this way, Wrapped turns its users into “active brand advocates on social media,” as one academic study put it. Or, as another paper phrased it, Spotify turns its users into “free labour” to help market its product. “For Spotify, it is 100% a brand-visibility moment,” says McDonald. “Social virality is the only metric the company cares about. The viral attention does help with user retention and reactivation, but the virality itself is the thing they’re measuring.”  

More than an effective marketing ploy, Wrapped has turned into a competitive advantage in a business where standalone music streaming services desperately need one. A company has a competitive advantage when it creates more economic value than its competitors. Economic value is the difference between the perceived value of the product and the costs required to produce the product. Some brands are able to charge a premium because they have succeeded, through the quality of the product and the effectiveness of marketing, in convincing consumers their product is worth more. Food made with better ingredients commands a price premium, for example. Sometimes differences in perception of value come down to marketing. The difference between luxury clothing brands’ prices can be explained by amounts spent on splashy advertisements and celebrity endorsements, not just the cost of materials and labor.   

Unlike streaming video-on-demand (SVOD) services, which attract viewers mainly through exclusive programming, music streaming platforms have — for the most part — the same content and must find other avenues to attract and retain customers. Amazon Music Unlimited, for example, is cheaper for members of Amazon Prime. Apple Music benefits from being part of the Apple entertainment ecosystem and Apple’s ownership of music identification app Shazam. YouTube Music gets its subscribers through YouTube, the most popular streaming app in the world. Spotify, a standalone company, can’t match Amazon’s low price, Apple’s omnipresence or YouTube’s ubiquity.  

Instead, Spotify competes on product features it develops in-house. Launched in 2015, Discover Weekly, a personalized playlist filled with recently released tracks, was so popular that people who streamed their Discover Weekly playlists streamed twice as much as people who didn’t. A product that popular helps give Spotify an advantage over its larger competitors. Discover Weekly was launched the same year Apple launched Apple Music. Although many onlookers expected Apple would crush Spotify, Spotify has consistently maintained a sizable lead in market share, and innovation played an important role in holding off behemoths like Apple and Amazon. As Will Page, former Spotify chief economist, put it in his 2021 book Pivot, Discover Weekly “create[d] a moat to protect Spotify’s castle.”

Wrapped follows in Discover Weekly’s footsteps as a moat-building product innovation. The key is Spotify’s ability to get its listeners to talk about Wrapped. One study found that Spotify Wrapped was more effective than Apple Music Replay in users’ willingness to create user-generated content (i.e. share Wrapped on social media). That’s gold in a business where consumers can choose between a number of fairly identical substitutes with similar features. Anything that increases engagement and prevents users from leaving for Apple, Amazon or YouTube is valuable. In that sense, developing a product that becomes a part of the cultural zeitgeist, like Wrapped, is perhaps the biggest competitive advantage a streaming service can have.