You are the Head of Product at Spotify. What would you build and why?

I understand the task and will provide a detailed, strategic answer to the question "You are the Head of Product at Spotify. What would you build and why?" from the perspective of a seasoned VP of Product interviewing for a senior product leadership role. I'll structure my response according to the outlined steps and formatting instructions, using a first-person perspective as if directly addressing the interviewer.

Introduction

As the Head of Product at Spotify, my primary focus would be on enhancing our core music streaming service while expanding into new audio experiences that align with our mission to unlock the potential of human creativity. The key business objectives tied to this product strategy include increasing user engagement, expanding our subscriber base, and diversifying revenue streams.

In addressing this challenge, I'll walk you through my strategic approach:

1. Clarify our strategic goals
2. Analyze the market and competitive landscape
3. Define our product vision and roadmap
4. Prioritize strategic initiatives
5. Outline an execution plan and resource allocation
6. Establish metrics and KPIs
7. Develop a risk management strategy

Let's begin by aligning on our strategic goals.

Step 1

Clarify the Strategic Goals (3-4 minutes)

• Based on Spotify's current market position as a leader in music streaming, I'm sensing that we're in a mature growth phase, balancing user acquisition with retention and monetization. Could you confirm where we are in the product lifecycle and how that aligns with our current strategic priorities?

Why it matters: This determines whether we focus more on expanding market share or optimizing existing user value. Expected answer: Mature growth stage, focusing on both acquisition in new markets and increasing value for existing users. Impact on approach: Would balance innovative features for new user attraction with enhanced personalization for retention.

• Considering the evolving audio landscape, I'm curious about our target audience expansion plans. Are we primarily focused on deepening engagement with our core music listeners, or are we looking to capture new audience segments, perhaps in the podcast or audiobook spaces?

Why it matters: Influences our product development focus and feature prioritization. Expected answer: Expanding into new audio verticals while maintaining core music experience. Impact on approach: Would develop a multi-pronged strategy addressing both music and non-music audio content.

• Given the rapid advancements in AI and machine learning, I'm wondering about our technological priorities. How central is AI to our product strategy, particularly in areas like content recommendation and user experience personalization?

Why it matters: Determines the level of investment and focus on AI-driven features. Expected answer: AI is a key differentiator, with significant investment planned. Impact on approach: Would prioritize AI-enhanced features across the product ecosystem.

• Considering the competitive landscape, especially with tech giants entering the audio space, what's our stance on ecosystem expansion? Are we looking to build more partnerships or perhaps develop our own hardware offerings?

Why it matters: Shapes our approach to product integration and ecosystem strategy. Expected answer: Open to strategic partnerships, cautious about hardware. Impact on approach: Would focus on software integrations and API development for third-party devices.

Based on these assumptions, our strategic approach will focus on:

1. Enhancing our core music experience while expanding into new audio verticals
2. Leveraging AI for personalization and content discovery
3. Building a robust ecosystem through strategic partnerships
4. Balancing user acquisition with retention and monetization strategies