Spotify is a prominent digital music, podcast, and video streaming service that was established in 2006 in Stockholm, Sweden by Daniel Ek and Martin Lorentzon. It operates under a freemium business model, offering basic services for free while premium features are accessible through paid subscriptions. The platform generates revenue from these subscriptions and advertising[2]. Over the years, Spotify has grown significantly, acquiring companies such as Tunigo, The Echo Nest, and Soundtrap, and securing partnerships with entities like WNYC Studios and Sony. It also collaborates with various brands for content curation[1] and exclusive deals. Spotify is available on numerous platforms and devices, providing a vast content library for users. Despite facing disputes, such as with Apple over App Store[3] fees, the service continues to innovate by updating its functionalities and features.
Spotify (/ˈspɒtɪfaɪ/;Swedish: [ˈspɔ̂tːɪfaj]) is a Swedish audio streaming and media service provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon. It is one of the largest music streaming service providers, with over 602 million monthly active users, including 236 million paying subscribers, as of December 2023. Spotify is listed (through a Luxembourg City-domiciled holding company, Spotify Technology S.A.) on the New York Stock Exchange in the form of American depositary receipts.
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| Type of business | Public |
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| Traded as |
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| Founded | 23 April 2006 |
| Headquarters | Stockholm, Sweden |
| Country of origin | Sweden |
| No. of locations | 15 offices |
| Founder(s) | |
| Key people | Daniel Ek (Chairman & CEO) Martin Lorentzon (treasurer) |
| Industry |
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| Revenue |  €13.25 billion (2023) |
| Operating income |  €–446 million (2023) |
| Net income |  €–532 million (2023) |
| Total assets | €8.35 billion (2023) |
| Total equity | €2.52 billion (2023) |
| Employees | 9,248 (December 2023) |
| Subsidiaries |
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| URL | spotify |
| Registration | Required |
| Users |
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| Launched | 7 October 2008 |
Spotify offers digital copyright restricted recorded audio content, including more than 100 million songs and five million podcasts, from record labels and media companies. As a freemium service, basic features are free with advertisements and limited control, while additional features, such as offline listening and commercial-free listening, are offered via paid subscriptions. Users can search for music based on artist, album, or genre, and can create, edit, and share playlists.
Spotify is available in most of Europe, as well as Africa, the Americas, Asia, and Oceania, with a total availability in 184 markets. Its users and subscribers are based largely in the US and Europe, jointly accounting for around 53% of users and 67% of revenue. It has no presence in mainland China where the market is dominated by QQ Music. The service is available on most devices, including Windows, macOS, and Linux computers, iOS and Android smartphones and tablets, smart home devices such as the Amazon Echo and Google Nest lines of products, and digital media players like Roku.
As of December 2023, Spotify was the 47th most-visited website in the world with 24.78% of its traffic coming from the United States followed by Brazil with 6.51% according to data provided by Semrush.
Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the number of artist streams as a proportion of total songs streamed. It distributes approximately 70% of its total revenue to rights holders (often record labels), who then pay artists based on individual agreements. While certain musicians have voiced objections to Spotify's royalty structure and its effect on record sales, others laud the service for offering a lawful option to combat piracy and for remunerating artists each time their music is played.
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