Instead of charging users for premium listening, Auddia will now offer its AI features free to listeners.
Auddia Inc. (AUUD) on Wednesday announced a major shift in its business, including changes to its flagship product, Faidr, an AI-powered app offering advertisement-free AM/FM streaming and podcasts.
Instead of charging users for premium listening, Auddia will now offer its AI features free to listeners.
Auddia stock traded over 15% higher on Wednesday morning. On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘high’ from ‘extremely low’ in 24 hours.
A Stocktwits user called the announcement “big news” for the company.
Auddia’s new business model seeks to generate revenue from musicians and their labels through a subscription-based service that guarantees song placements on ad-free radio streams.
Unlike traditional platforms where artists upload tracks and hope to be discovered, Auddia says Discovr Radio guarantees airtime and utilizes AI to integrate new music directly into radio playlists.
“The largest group of potential fans remains on radio, listening to music passively, not searching for new artists, even though they are chomping at the bit to hear new, exciting music based on our surveys and research. Our new Discovr Radio platform will deliver this experience,” said Auddia’s CMO, Theo Romeo.
At the heart of this offering are two key tools: an AI Placement Engine and a dedicated Artist Portal. The engine uses contextual analysis to place songs alongside similar artists and target appropriate audiences. Meanwhile, the portal gives artists access to engagement metrics like total plays, listener feedback, and demographic data.
Auddia expects to unveil a minimum viable product (MVP) for Discovr Radio by late 2025 or in the first quarter of 2026. Auddia stock has lost over 74% in 2025 and 90% in the last 12 months.
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