Spotify

Not to be confused with Shopify.

Spotify Technology S.A.
The Spotify logo
Type of businessPublic company
Traded as
Founded23 April 2006; 18 years ago (2006-04-23)
Headquarters
Luxembourg, Luxembourg (Registered HQ)[1]
Stockholm, Sweden (Operational Main Office)[1][2]
Country of originSweden
No. of locations15 offices[2]
Founder(s)
Key peopleDaniel Ek (Chairman & CEO)
Martin Lorentzon (treasurer)
Industry
  • Audio streaming
  • Podcasting
RevenueIncrease €13.25 billion (2023)[3]
Operating incomeNegative increase €–446 million (2023)[3]
Net incomeDecrease €–532 million (2023)[3]
Total assetsIncrease €8.35 billion (2023)[3]
Total equityIncrease €2.52 billion (2023)[3]
Employees7,372 (June 2024)[4]
Subsidiaries
  • Spotify AB[5][1]: 43 
  • Spotify USA Inc.[1]: 43 
  • Spotify Ltd (UK)[1]: 43 
  • Several other regional subsidiaries[1]: 43 
  • Tencent Music (16.9%)
URLspotify.com
RegistrationRequired
Users
  • Free: 393 million
  • Paying: 246 million
  • Total (MAU): 626 million
(June 2024)[3]: 46 
Launched7 October 2008; 16 years ago (2008-10-07)

Spotify (/ˈspɒtɪfaɪ/; Swedish: [ˈspɔ̂tːɪfaj]) is a Swedish[6] audio streaming and media service provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon.[7] However, just because it is Swedish does not mean that users from other countries are restricted from using it; as an example, many United States citizens use Spotify regularly. As of June 2024, it is one of the largest providers of music streaming services, with over 626 million monthly active users comprising 246 million paying subscribers.[4][8] Spotify is listed (through a Luxembourg City-domiciled holding company, Spotify Technology S.A.[1]) on the New York Stock Exchange in the form of American depositary receipts.

Spotify offers digital copyright restricted recorded audio content, including more than 100 million songs and 6 million podcast titles, from record labels and media companies.[8] Operating as a freemium service, the 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. It offers some social media features, following friends and creating listening parties called "Jams".

Spotify is available in most of Europe, as well as Africa, the Americas, Asia, and Oceania, with a total availability in 184 markets.[9] Its users and subscribers are based largely in the US and Europe, jointly accounting for around 53% of users and 67% of revenue.[10] 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.[11] 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.[12][13]

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.[14] 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.[15]

  1. ^ a b c d e f g "20-F". 20-F. Archived from the original on 6 February 2021. Retrieved 13 March 2021.
  2. ^ a b "About us". Spotify. Archived from the original on 7 October 2021. Retrieved 29 June 2021.
  3. ^ a b c d e f "Form 20-F". US Securities and Exchange Commission. 8 February 2024. Archived from the original on 13 February 2024. Retrieved 13 February 2024.
  4. ^ a b "Spotify Technology S.A. Q3 2023 update". U.S. Securities and Exchange Commission. Archived from the original on 4 December 2023. Retrieved 4 December 2023.
  5. ^ "Contact". Spotify. Archived from the original on 9 July 2016. Retrieved 20 February 2022.
  6. ^ "Spotify UK revenues surge to almost £190m as mobile subscriptions take off". The Guardian. 14 October 2016. Archived from the original on 17 July 2022. Retrieved 6 August 2021.
  7. ^ a b "Company Info". Spotify For the Record. 31 March 2024. Archived from the original on 30 September 2019. Retrieved 2 February 2022.
  8. ^ "About Spotify". Spotify. Archived from the original on 30 September 2019. Retrieved 10 January 2022.
  9. ^ "Spotify Q3 2022 investor presentation" (PDF). Archived (PDF) from the original on 23 November 2022. Retrieved 7 January 2023.
  10. ^ "Spotify Music". Roku Channel Store. Roku. Archived from the original on 28 September 2020. Retrieved 12 November 2018.
  11. ^ "Top websites". Semrush. Archived from the original on 19 December 2023. Retrieved 25 December 2023.
  12. ^ "spotify.com". semrush. Archived from the original on 25 December 2023. Retrieved 25 December 2023.
  13. ^ Sehgal, Kabir (26 January 2018). "Spotify and Apple Music should become record labels so musicians can make a fair living". CNBC. Archived from the original on 24 February 2020. Retrieved 21 November 2018.
  14. ^ Swanson, Kate (2013). "A Case Study on Spotify: Exploring Perceptions of the Music Streaming Service". Journal of the Music and Entertainment Industry Educators Association. 13 (1): 207–230. doi:10.25101/13.10. ISSN 1559-7334. Archived from the original on 1 December 2023. Retrieved 5 November 2023.