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Spotify (; ) is a proprietary Swedish
audio streaming Streaming media is multimedia that is delivered and consumed in a continuous manner from a source, with little or no intermediate storage in network elements. ''Streaming'' refers to the delivery method of content, rather than the content it ...
and media services provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon. It is one of the largest music streaming service providers, with over 456 million monthly active users, including 195 million paying subscribers, as of September 2022. Spotify is listed (through a Luxembourg City-domiciled
holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
, Spotify Technology S.A.) on the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...
in the form of
American depositary receipt An American depositary receipt (ADR, and sometimes spelled ''depository'') is a negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets. Shares of many non-U.S ...
s. Spotify offers digital copyright restricted recorded music and
podcast A podcast is a program made available in digital format for download over the Internet. For example, an episodic series of digital audio or video files that a user can download to a personal device to listen to at a time of their choosin ...
s, including more than 82 million songs, 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 An album is a collection of audio recordings issued on compact disc (CD), vinyl, audio tape, or another medium such as digital distribution. Albums of recorded sound were developed in the early 20th century as individual 78 rpm records co ...
, 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 Oceania (, , ) is a geographical region that includes Australasia, Melanesia, Micronesia, and Polynesia. Spanning the Eastern and Western hemispheres, Oceania is estimated to have a land area of and a population of around 44.5 million ...
, with a total availability in 184 markets. The service is available on most devices including Windows,
macOS macOS (; previously OS X and originally Mac OS X) is a Unix operating system developed and marketed by Apple Inc. since 2001. It is the primary operating system for Apple's Mac computers. Within the market of desktop and lapt ...
, and
Linux Linux ( or ) is a family of open-source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991, by Linus Torvalds. Linux is typically packaged as a Linux distribution, w ...
computers,
iOS iOS (formerly iPhone OS) is a mobile operating system created and developed by Apple Inc. exclusively for its hardware. It is the operating system that powers many of the company's mobile devices, including the iPhone; the term also include ...
and Android smartphones and tablets,
smart home Smart or SMART may refer to: Arts and entertainment * ''Smart'' (Hey! Say! JUMP album), 2014 * Smart (Hotels.com), former mascot of Hotels.com * ''Smart'' (Sleeper album), 1995 debut album by Sleeper * '' SMart'', a children's television se ...
devices such as the
Amazon Echo Amazon Echo, often shortened to Echo, is an American brand of smart speakers developed by Amazon. Echo devices connect to the voice-controlled intelligent personal assistant service '' Alexa'', which will respond when a user says "Alexa". Users ...
and Google Nest lines of products and digital media players like
Roku Roku ( ) is a brand of hardware digital media players manufactured by American company Roku, Inc. They offer access to streaming media content from online services. The first Roku model, developed in collaboration with Netflix, was introduced ...
. 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 label A record label, or record company, is a brand or trademark of music recordings and music videos, or the company that owns it. Sometimes, a record label is also a publishing company that manages such brands and trademarks, coordinates the produ ...
s), who then pay artists based on individual agreements. According to Ben Sisario of ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
,'' approximately 13,000 out of seven million artists (0.19%) on Spotify generated $50,000 or more in payments in 2020.


History

Spotify was founded in 2006 in Stockholm, Sweden, by Daniel Ek, former CTO of Stardoll, and Martin Lorentzon, co-founder of Tradedoubler. According to Ek, the company's title was initially misheard from a name shouted by Lorentzon. Later they thought out a
portmanteau A portmanteau word, or portmanteau (, ) is a blend of words

Early international launches

In February 2010, Spotify opened public registration for the free service tier in the United Kingdom. Registrations surged following the release of the mobile service, leading Spotify to halt registration for the free service in September, returning the UK to an invitation-only policy. Spotify launched in the United States in July 2011, and offered a six-month, ad-supported trial period, during which new users could listen to an unlimited amount of music for free. In January 2012, the free trial periods began to expire, and limited users to ten hours of streaming each month and five plays per song. Using PC streaming, you would see a similar structure to what we see today, with a listener being able to play songs freely, but with ads every 4-7 songs depending on listening duration. Later that same year, in March, Spotify removed all limits on the free service tier indefinitely, including mobile devices. In April 2016, Ek and Lorentzon wrote an open letter to Swedish politicians, demanding action in three areas that they claimed hindered the company's ability to recruit top talent as Spotify grows, including access to flexible housing, better education in the programming and development fields, and stock options. Ek and Lorentzon wrote that to continue competing in a global economy, politicians needed to respond with new policies, or else thousands of Spotify jobs would be moved from Sweden to the United States. In February 2017, Spotify announced expansion of its United States operations in Lower Manhattan, New York City, at 4 World Trade Center, adding approximately 1,000 new jobs and retaining 832 existing positions. The company's US headquarters are located in New York City's
Flatiron District The Flatiron District is a neighborhood in the New York City borough of Manhattan, named after the Flatiron Building at 23rd Street, Broadway and Fifth Avenue. Generally, the Flatiron District is bounded by 14th Street, Union Square and Gre ...
. On 14 November 2018, the company announced a total of 13 new markets in the
MENA MENA, an acronym in the English language, refers to a grouping of countries situated in and around the Middle East and North Africa. It is also known as WANA, SWANA, or NAWA, which alternatively refers to the Middle East as Western Asia (or a ...
region, including the creation of a new Arabic hub and several playlists.


Other developments


Streaming records

In October 2015, "
Thinking Out Loud "Thinking Out Loud" is a song by English singer-songwriter Ed Sheeran, recorded for his second studio album, '' ×'' (2014). It was written by Sheeran and Amy Wadge, and produced by frequent collaborator Jake Gosling. It was released in the ...
" by
Ed Sheeran Edward Christopher Sheeran (; born 17 February 1991) is an English singer-songwriter. Born in Halifax, West Yorkshire and raised in Framlingham, Suffolk, he began writing songs around the age of eleven. In early 2011, Sheeran independently re ...
became the first song to pass 500 million streams. A month later, Spotify announced that " Lean On" by
Major Lazer Major Lazer is an American electronic dance music DJ trio, which includes record producer Diplo, and DJs Walshy Fire and Ape Drums. It originates from Kingston, Jamaica, and was founded in 2008 by Diplo and Switch, with Switch leaving after ...
and
DJ Snake William Sami Étienne Grigahcine (born 13 June 1986), known by his stage name DJ Snake, is an Algerian French music producer and DJ, first achieving international recognition in 2013 by releasing an instrumentation-oriented single called "Turn Do ...
featuring was its most-streamed song of all time with over 525 million streams worldwide. In April 2016, Rihanna overtook
Justin Bieber Justin Drew Bieber ( ; born March 1, 1994) is a Canadian singer. Bieber is recognized for his genre-melding musicianship and has played an influential role in modern-day popular music. He was discovered by American record executive Scooter ...
to become the biggest artist on Spotify, with 31.3 million monthly active listeners. In May 2016, Rihanna was overtaken by
Drake Drake may refer to: Animals * A male duck People and fictional characters * Drake (surname), a list of people and fictional characters with the family name * Drake (given name), a list of people and fictional characters with the given name * ...
with 31.85 million total streams. In December 2016, Drake's just-under 36 million monthly listeners were overtaken by the Weeknd's 36.068 million. Later that same month, Drake's song "
One Dance "One Dance" is a song by Canadian rapper and singer Drake from his fourth studio album '' Views'' (2016). It features guest vocals from Nigerian afrobeats artist WizKid and British singer Kyla. The artists co-wrote the dancehall and afrobeats so ...
" became the first song to hit one billion streams on Spotify. Upon its release in August 2017, the single "
Look What You Made Me Do "Look What You Made Me Do" is a song recorded by American singer-songwriter Taylor Swift. It was released on August 24, 2017, by Big Machine Records, as the lead single from her sixth studio album, '' Reputation'' (2017). Swift wrote and produ ...
" by
Taylor Swift Taylor Alison Swift (born December 13, 1989) is an American singer-songwriter. Her discography spans multiple genres, and her vivid songwriting—often inspired by her personal life—has received critical praise and wide media coverage. Bor ...
earned over eight million streams within 24 hours, breaking the record for the most single-day streams for a track. On 19 June 2018,
XXXTentacion Jahseh Dwayne Ricardo Onfroy (January 23, 1998 – June 18, 2018), known professionally as XXXTentacion, was an American rapper and singer-songwriter. Though a controversial figure due to his widely publicized legal troubles, XXXTentacion ga ...
's hit single " Sad!" broke Swift's single-day streaming record, amassing 10.4 million streams the day after he was fatally shot in Florida.


User growth

In March 2011, Spotify announced a customer base of 1 million paying subscribers across Europe, and by September 2011, the number of paying subscribers had doubled to two million. In August 2012, ''
Time Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, ...
'' reported 15 million active users, four million being paying Spotify subscribers. User growth continued, reaching 20 million total active users, including five million paying customers globally and one million paying customers in the United States, in December 2012. By March 2013, the service had 24 million active users, six million being paying subscribers, which grew to 40 million users (including ten million paying) in May 2014, 60 million users (including 15 million paying) in December 2014, 75 million users (20 million paying) in June 2015, 30 million paying subscribers in March 2016, 40 million paying subscribers in September 2016, and 100 million total users in June 2016. In April 2020, Spotify reached 133 million premium users. In countries affected by the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
, Spotify registered a fall in users in late February, but it has seen a recovery. In March 2022, Spotify had 182 million premium subscribers. At the end of Q2 2022, Spotify reported 188 million paying subscribers and 433 million total users.


Premium-exclusive albums

The ''
Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Ni ...
'' reported in March 2017 that, as part of its efforts to renegotiate new licensing deals with music labels, Spotify and major record labels had agreed that Spotify would restrict some newly released albums to its Premium tier, with Spotify receiving a reduction in royalty fees to do so. Select albums would be available only on the Premium tier for a period of time, before general release. The deal "may be months away from being finalized, but Spotify is said to have cleared this particular clause with major record labels". New reports in April confirmed that Spotify and
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch– American multinational music corporation under Dutch law. UMG's corporate headquarters are located in Hilversum, Netherlands and its ...
had reached an agreement to allow artists part of Universal to limit their new album releases to the Premium service tier for a maximum of two weeks. Spotify CEO Daniel Ek commented that "We know that not every album by every artist should be released the same way, and we've worked hard with UMG to develop a new, flexible release policy. Starting today, Universal artists can choose to release new albums on premium only for two weeks, offering subscribers an earlier chance to explore the complete creative work, while the singles are available across Spotify for all our listeners to enjoy". It was announced later in April that this type of agreement would be extended to
indie Indie is a short form of "independence" or "independent"; it may refer to: Arts, entertainment, and media Gaming *Independent video game development, video games created without financial backing from large companies *Indie game, any game (board ...
artists signed to the Merlin Network agency.


Direct public offering

Spotify went public on the stock market in April 2018 using a direct public offering rather than an
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
. This approach is not intended to raise fresh capital, but to let investors get their returns.
Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...
is the company's slated advisor on the matter. After making its debut on the New York Stock Exchange on 3 April 2018,
CNBC CNBC (formerly Consumer News and Business Channel) is an American basic cable business news channel. It provides business news programming on weekdays from 5:00 a.m. to 7:00 p.m., Eastern Time, while broadcasting talk sho ...
reported that Spotify opened at $165.90, more than 25% above its reference price of $132.


2020 hacking incident

On 3 July 2020,
cybersecurity Computer security, cybersecurity (cyber security), or information technology security (IT security) is the protection of computer systems and networks from attack by malicious actors that may result in unauthorized information disclosure, t ...
firm VPNMentor discovered a database containing 380 million individual records, including the logins and passwords of Spotify users. The database was thought to be evidence of an impending credential stuffing
cyberattack A cyberattack is any offensive maneuver that targets computer information systems, computer networks, infrastructures, or personal computer devices. An attacker is a person or process that attempts to access data, functions, or other restricte ...
targeting Spotify as it contained the credentials of up to 350,000 compromised user accounts. In response to the attack, Spotify issued a rolling reset of passwords for affected accounts in November 2020.


Acquisitions and exclusivity deals

In May 2013, Spotify acquired music discovery app Tunigo. In March 2014, they acquired
The Echo Nest The Echo Nest is a music intelligence and data platform for developers and media companies. Owned by Spotify since 2014, the company is based in Somerville, MA. The Echo Nest began as a research spin-off from the MIT Media Lab to understand t ...
, a music intelligence company. In June 2015, Spotify announced they had acquired Seed Scientific, a data science consulting firm and analytics company. In a comment to
TechCrunch TechCrunch is an American online newspaper focusing on high tech and startup companies. It was founded in June 2005 by Archimedes Ventures, led by partners Michael Arrington and Keith Teare. In 2010, AOL acquired the company for approximately $ ...
, Spotify said that Seed Scientific's team would lead an advanced analytics unit within the company, focused on developing data services. In January 2016, they acquired social and messaging startups Cord Project and Soundwave, followed in April 2016 by CrowdAlbum, a "startup that collects photos and videos of performances shared on social networks," and would "enhance the development of products that help artists understand, activate, and monetize their audiences". In November 2016, Spotify acquired Preact, a "cloud-based platform and service developed for companies that operate on subscription models which helps reduce churn and build up their subscriber numbers". In March 2017, Spotify acquired Sonalytic, an audio detection startup, for an undisclosed amount of money. Spotify stated that Sonalytic would be used to improve the company's personalized playlists, better match songs with compositions, and improve the company's publishing data system. Later that month, Spotify also acquired MightyTV, an app connected to television streaming services, including
Netflix Netflix, Inc. is an American subscription video on-demand over-the-top streaming service and production company based in Los Gatos, California. Founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California, it offers a fi ...
and
HBO Go HBO Go is a partly-inactive authenticated video on demand of the pay television service HBO. The service allowed subscribers to HBO via television providers to access its programming on-demand via the HBO website, mobile apps, and digital medi ...
, that recommends content to users. Spotify intended to use MightyTV to improve its advertising efforts on the free tier of service. In April 2017, they acquired Mediachain, a blockchain startup that had been developing a decentralized database system for managing attribution, and other metadata for media. This was followed in May 2017 with the acquisition of
artificial intelligence Artificial intelligence (AI) is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans. Example tasks in which this is done include speech r ...
startup Niland, which uses technology to improve personalisation and recommendation features for users. In November 2017, Spotify acquired Soundtrap, an online music studio startup. On 12 April 2018, Spotify acquired the music licensing platform Loudr. In August 2018, Spotify bought the exclusive rights to '' The Joe Budden Podcast'' and expanded the show to a twice-weekly schedule. On 6 February 2019, Spotify acquired the podcast networks
Gimlet Media Gimlet Media LLC is a digital media company and podcast network, focused on producing narrative podcasts and headquartered in Brooklyn, New York. The company was founded in 2014 by Alex Blumberg and Matthew Lieber, who serve as the company's CE ...
and Anchor FM Inc., with the goal of establishing themselves as a leading figure in podcasting. On 26 March 2019, Spotify announced they would acquire another podcast network,
Parcast Parcast is a digital media firm and podcast network, that specializes in producing both scripted podcasts as well as audio dramas. It was founded in 2016 by podcaster Max Cutler and his father Ron Cutler (radio broadcaster), Ron Cutler in Los Ange ...
. On 12 September 2019, Spotify acquired SoundBetter, a music production marketplace for people in the music industry to collaborate on projects, and distribute music tracks for licensing. On November 19, 2019, Spotify announced the acquisition of the exclusive rights to '' The Last Podcast on the Left''. On 5 February 2020, Spotify announced its intent to acquire Bill Simmons' sports and pop culture blog and podcast network The Ringer for an undisclosed amount. On 19 May 2020, Spotify acquired exclusive rights to stream the popular podcast ''
The Joe Rogan Experience ''The Joe Rogan Experience'' is a podcast hosted by American comedian, presenter, and UFC color commentator Joe Rogan. It launched on December 24, 2009, on YouTube by Rogan and comedian Brian Redban, who was its sole co-host and producer unti ...
'' beginning in September of that year, under an agreement valued at around US$100 million''.'' In November 2020, Spotify announced plans to acquire
Megaphone A megaphone, speaking-trumpet, bullhorn, blowhorn, or loudhailer is usually a portable or hand-held, cone-shaped acoustic horn used to amplify a person's voice or other sounds and direct it in a given direction. The sound is introduced int ...
from
The Slate Group The Slate Group, legally The Slate Group, LLC, is an American online publishing entity established in June 2008 by Graham Holdings Company. Among the publications overseen by The Slate Group are ''Slate'' and '' ForeignPolicy.com''. The creation o ...
for . In March 2021, Spotify acquired app developer Betty Labs and their live social audio app, Locker Room, On May 12, 2021. '' Armchair Expert'' announced on Instagram that the podcast would be available exclusively on Spotify beginning July 1, saying they would continue to maintain the same creative control over the show after the move. Locker Room was rebranded in June 2021 as Spotify Greenroom, and turned into a
Clubhouse Clubhouse may refer to: Locations * The meetinghouse of: ** A club (organization), an association of two or more people united by a common interest or goal ** In the United States, a country club ** In the United Kingdom, a gentlemen's club * A ...
competitor. The same month, Spotify acquired Podz, a podcast discovery startup. Also the same month, Spotify bought the exclusive rights to the '' Call Her Daddy'' podcast. In November 2021, Spotify acquired audiobook company Findaway, including its publishing imprint OrangeSky Audio. In December 2021, Spotify acquired Whooshkaa, a podcast tech company that develops specialized technology that allows radio broadcasters to easily turn their existing audio content into on-demand podcast programming. In February 2022, Spotify acquired Chartable and Podsights. Both are podcast advertising companies. In 2022, Spotify Greenroom rebranded as Spotify Live. In June 2022, Spotify acquired Sonantic, a synthetic voice and video developer. In July 2022, Spotify acquired Heardle, a
Wordle ''Wordle'' is a web-based word game created and developed by Welsh software engineer Josh Wardle, and owned and published by The New York Times Company since 2022. Players have six attempts to guess a five-letter word, with feedback given for ...
-inspired music trivia game, for an undisclosed amount. In October 2022, Spotify acquired the
Dublin Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 c ...
-based content moderation startup, Kinzen.


Company partnerships

In January 2015,
Sony , commonly stylized as SONY, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. As a major technology company, it operates as one of the world's largest manufacturers of consumer and professiona ...
announced PlayStation Music, a new music service with Spotify as its exclusive partner. PlayStation Music incorporates the Spotify service into Sony's
PlayStation 3 The PlayStation 3 (PS3) is a home video game console developed by Sony Computer Entertainment. The successor to the PlayStation 2, it is part of the PlayStation brand of consoles. It was first released on November 11, 2006, in Japan, November ...
and PlayStation 4 gaming consoles, and
Sony Xperia Xperia () is the brand name of smartphones and tablets from Sony. The name Xperia is derived from the word "experience", and was first used in the Xperia X1 tagline of "I Xperia the best". Sony Mobile was previously known globally as Sony Er ...
mobile devices. The service launched on 30 March 2015. In March 2017, Spotify announced a partnership with the South by Southwest (SXSW) conference for 2017, presenting specific content in special playlists through an SXSW hub in Spotify's apps. The integration also enabled Spotify within the SXSW GO app to help users discover and explore artists performing at the conference. Two more partnerships were announced in March; one with
WNYC Studios WNYC Studios is a producer and distributor of podcasts and on-demand and broadcast audio. WNYC Studios is a subsidiary of New York Public Radio and is headquartered in New York City. History In May 2015, WNYC began distributing its shows ''R ...
, and one with
Waze Waze (; he, ווייז, label=Hebrew), formerly FreeMap Israel, is a subsidiary company of Google that provides satellite navigation software on smartphones and other computers that support the Global Positioning System (GPS). In addition to ...
. The WNYC Studios partnership brought various podcasts from WNYC to Spotify, including Note To Self, On the Media and
Here's the Thing ''Here's the Thing'' is a public radio show and podcast hosted by actor Alec Baldwin. On October 24, 2011, New York City's WNYC released the first episode of Baldwin's podcast, a series of interviews with public figures including artists, policy ...
. Spotify also announced that the third season of WNYC Studios' 2 Dope Queens podcast would premiere with a two-week exclusivity period on the service on 21 March 2017. The Waze partnership allows Waze app users to view directions to destinations within the Spotify app and access their Spotify playlists through the Waze app. In October 2017,
Microsoft Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washin ...
announced that it would be ending its Groove Music streaming service by December, with all music from users transferring to Spotify as part of a new partnership. In December, Spotify and
Tencent Tencent Holdings Ltd. () is a Chinese multinational technology and entertainment conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimedia companies in the world based on revenue. It is also the wo ...
's music arm, Tencent Music Entertainment (TME), agreed to swap stakes and make an investment in each other's music businesses. As a result of this transaction, Spotify gained a 9% stake in TME with TME gaining a 7.5% stake in Spotify. In February 2018, Spotify integrated with the gaming-oriented voice chat service
Discord Discord is a VoIP and instant messaging social platform. Users have the ability to communicate with voice calls, video calls, text messaging, media and files in private chats or as part of communities called "servers".The developer documenta ...
on desktop clients, allowing users to display their currently playing song as a rich presence on their profile, and invite other users with Spotify Premium to group "listening parties". In April, Spotify announced a discounted entertainment bundle with video-on-demand provider Hulu, which included discounted rates for university students. In May 2020, Spotify teamed up with
ESPN ESPN (originally an initialism for Entertainment and Sports Programming Network) is an American international basic cable sports channel owned by ESPN Inc., owned jointly by The Walt Disney Company (80%) and Hearst Communications (20%). Th ...
and
Netflix Netflix, Inc. is an American subscription video on-demand over-the-top streaming service and production company based in Los Gatos, California. Founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California, it offers a fi ...
to curate podcasts around their Michael Jordan documentary '' The Last Dance'', and in September, Spotify signed a deal with
Chernin Entertainment Chernin Entertainment is an American film and television production company founded and owned by former News Corporation president and chief operating officer Peter Chernin, also CEO and chairman of the company. Jenno Topping is the current Head ...
to produce movies and TV shows. In 2022, Spotify became the official streaming partner of
FC Barcelona Futbol Club Barcelona (), commonly referred to as Barcelona and colloquially known as Barça (), is a professional football club based in Barcelona, Catalonia, Spain, that competes in La Liga, the top flight of Spanish football. Found ...
. In May 2022, Spotify announced a partnership with the online game platform and game creation system the Roblox Corporation, the partnership saw Spotify as the first streaming brand to have a presence within the game with the launch of "Spotify Island".


Dispute with Apple

In July 2015, Spotify launched an email campaign to urge its
App Store An App Store (or app marketplace) is a type of digital distribution platform for computer software called applications, often in a mobile context. Apps provide a specific set of functions which, by definition, do not include the running of the c ...
subscribers to cancel their subscriptions and start new ones through its website, bypassing the 30% transaction fee for in-app purchases required for
iOS iOS (formerly iPhone OS) is a mobile operating system created and developed by Apple Inc. exclusively for its hardware. It is the operating system that powers many of the company's mobile devices, including the iPhone; the term also include ...
applications by technology company
Apple Inc. Apple Inc. is an American multinational technology company headquartered in Cupertino, California, United States. Apple is the largest technology company by revenue (totaling in 2021) and, as of June 2022, is the world's biggest company ...
A later update to the Spotify app on iOS was rejected by Apple, prompting Spotify's general counsel Horacio Gutierrez to write a letter to Apple's then-general counsel Bruce Sewell, stating: "This latest episode raises serious concerns under both U.S. and EU competition law. It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to
Apple Music Apple Music is a music, audio and video streaming service developed by Apple Inc. Users select music to stream to their device on-demand, or they can listen to existing playlists. The service also includes the Internet radio stations Apple M ...
, particularly when seen against the backdrop of Apple's previous anticompetitive conduct aimed at Spotify ... we cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors." Sewell responded to the letter: "We find it troubling that you are asking for exemptions to the rules we apply to all developers and are publicly resorting to rumors and half-truths about our service." He also elaborated that "Our guidelines apply equally to all app developers, whether they are game developers, e-book sellers, video-streaming services or digital music distributors; and regardless of whether they compete against Apple. We did not alter our behavior or our rules when we introduced our own music streaming service or when Spotify became a competitor". Furthermore, he stated that "There is nothing in Apple's conduct that 'amounts to a violation of applicable antitrust laws.' Far from it. ... I would be happy to facilitate an expeditious review and approval of your app as soon as you provide us with something that is compliant with the App Store's rules". In the following months, Spotify joined several other companies in filing a letter with the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
's antitrust body indirectly accusing Apple and
Google Google LLC () is an American Multinational corporation, multinational technology company focusing on Search Engine, search engine technology, online advertising, cloud computing, software, computer software, quantum computing, e-commerce, ar ...
of "abusing their 'privileged position' at the top of the market", by referring to "some" companies as having "transformed into 'gatekeepers' rather than 'gateways'". The complaint led to the European Union announcing that it would prepare an initiative by the end of 2017 for a possible law addressing unfair competition practices. Spotify released the first version of its
Apple Watch Apple Watch is a line of smartwatches produced by Apple Inc. It incorporates fitness tracking, health-oriented capabilities, and wireless telecommunication, and integrates with iOS and other Apple products and services. The Apple Watch was rel ...
app in November 2018, allowing playback control of the iPhone via the watch. Users can also choose which devices to play music on via Bluetooth. In a further escalation of the dispute with Apple, on 13 March 2019, Spotify filed an antitrust complaint with the European Commission over unfair app store practices. Two days later, Apple responded, stating that the claim was misleading rhetoric and that Spotify wanted benefits of a free app without being a free app. Spotify responded with a statement calling Apple a monopolist and stated that they had only filed the complaint as Apple's actions hurt competition and consumers and clearly violated the law. It also said that Apple believed Spotify users on the app store were Apple's customers and not Spotify's. Apple responded to Spotify's claims by counter-claiming that Spotify's market reach and user base would not have been possible without the Apple App Store platform. Additionally, Apple stated that they have attempted to work with Spotify to integrate the service better with Apple's products, such as
Siri Siri ( ) is a virtual assistant that is part of Apple Inc.'s iOS, iPadOS, watchOS, macOS, tvOS, and audioOS operating systems. It uses voice queries, gesture based control, focus-tracking and a natural-language user interface to answer qu ...
and Apple Watch. In 2019, under
iOS 13 iOS 13 is the thirteenth major release of the iOS mobile operating system developed by Apple Inc. for their iPhone, iPod Touch, and HomePod lines. The successor to iOS 12 on those devices, it was announced at the company's Worldwide Develop ...
, it became possible to play Spotify music using Siri commands. Spotify was one of the first companies to support Epic Games in their lawsuit against Apple, which was filed after Epic also tried to bypass Apple's 30% fee for
microtransactions Microtransactions, often abbreviated as mtx, are a business model where users can purchase virtual goods with micropayments. Microtransactions are often used in free-to-play games to provide a revenue source for the developers. While microtransact ...
in
Fortnite ''Fortnite'' is an online video game developed by Epic Games and released in 2017. It is available in three distinct game mode versions that otherwise share the same general gameplay and game engine: ''Fortnite Battle Royale'', a free-to- ...
. In September 2020, Spotify, Epic, and other companies founded The Coalition for App Fairness, which aims for better conditions for the inclusion of apps in
app store An App Store (or app marketplace) is a type of digital distribution platform for computer software called applications, often in a mobile context. Apps provide a specific set of functions which, by definition, do not include the running of the c ...
s.


Dispute with Kakao Entertainment Corp.

On March 1, 2021, Spotify confirmed that its platform would no longer have access to music from artists represented by Kakao Entertainment. However, after talking it out and renewing the contracts between the two, Spotify later announced that they had reached an agreement with Kakao Entertainment, allowing their content to be available once again on the platform across the globe.


Functionality

In November 2021, Spotify hid the "shuffle" button for albums following a request by singer
Adele Adele Laurie Blue Adkins (, ; born 5 May 1988), professionally known by the mononym Adele, is an English singer and songwriter. After graduating in arts from the BRIT School in 2006, Adele signed a rec ...
, arguing that tracks in albums are supposed to be played back in the order specified by the artist in order to "tell a story".


NFTs

In May 2022, Spotify began testing a feature that would allow select artists to promote their
NFTs The National Film and Television School (NFTS) is a film, television and games school established in 1971 and based at Beaconsfield Studios in Beaconsfield, Buckinghamshire, England. It is featured in the 2021 ranking by ''The Hollywood Repor ...
via their profiles. Some artists included in this initial test phase were Steve Aoki and The Wombats. The testing was very limited in nature and was only available on Spotify's Android app in the US.


Business model

Spotify operates under a freemium business model (basic services are free, while additional features are offered via paid subscriptions). Spotify generates revenue by selling premium streaming subscriptions to users and advertising placements to third parties. Some of the premium options users may choose from include individual, duo, family, and student. In December 2013, the company launched a new website, "Spotify for Artists, " explaining its business model and revenue data. Spotify gets its content from major record labels as well as independent artists and pays
copyright A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
holders royalties for streaming music. The company pays 70% of its total revenue to rights holders. Spotify for Artists states that the company does not have a fixed per-play rate; instead, it considers factors such as the user's home country and the individual artist's royalty rate. Rights holders received an average per-play payout between $.000029 and $.0084. Spotify offers an unlimited subscription package, close to the Open Music Model (OMM) estimated
economic equilibrium In economics, economic equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the ( equilibrium) values of economic variables will not change. For example, in the s ...
for the recording industry. However, the incorporation of digital rights management (DRM) limitation diverges from the OMM and competitors such as
iTunes Store The iTunes Store is a digital media store operated by Apple Inc. It opened on April 28, 2003, as a result of Steve Jobs' push to open a digital marketplace for music. As of April 2020, iTunes offered 60 million songs, 2.2 million apps, 25,00 ...
and
Amazon Music Amazon Music (previously Amazon MP3) is a music streaming platform and online music store operated by Amazon. Launched in public beta on September 25, 2007, in January 2008 it became the first music store to sell music without digital rights ...
that have dropped DRM. In 2013, Spotify revealed that it paid artists an average of $0.007 per stream. ''
Music Week ''Music Week'' is a trade publication for the UK record industry distributed via a website and a monthly print magazine. It is published by Future. History Founded in 1959 as '' Record Retailer'', it relaunched on 18 March 1972 as ''Music W ...
'' editor Tim Ingham commented that the figure was not as "alarming" as it appeared, writing: "Unlike buying a CD or download, streaming is not a one-off payment. Hundreds of millions of streams of tracks are happening every day, which quickly multiplies the potential revenues on offer – and is a constant long-term source of income for artists."


Accounts and subscriptions

As of August 2022, the three Spotify subscription types are: None of these subscriptions limit listening time. In March 2014, Spotify introduced a discounted Premium subscription tier for students in which students in the United States enrolled in a university pay half-price for a Premium subscription. In April 2017, the discount was expanded to 33 more countries. Spotify introduced a Family subscription in October 2014, which allows up to 5 family members to have a premium subscription. In May 2016, the limit was changed to 6 family members, and the price was reduced. The Family subscription provides access to Spotify Kids. In November 2018, Spotify announced it was opening up Spotify Connect to all of the users using its Free service, however, these changes still required products supporting Spotify Connect to support the latest
software development kit A software development kit (SDK) is a collection of software development tools in one installable package. They facilitate the creation of applications by having a compiler, debugger and sometimes a software framework. They are normally specific ...
. In July 2020, Spotify added another tier, Premium Duo. This is aimed at couples and for $12.99 it lets up to 2 people (living at the same address) share a subscription. In February 2021, Spotify announced their plans to introduce a HiFi subscription, to offer listening in high fidelity, lossless sound quality. The rollout for the HiFi tier is yet to be announced. In August 2021, Spotify launched a test subscription tier called Spotify Plus. The subscription costs $0.99 and is supposed to be a combination of the free and premium tiers. Subscribers to this plan will still receive ads but will get the ability to listen to songs without shuffle mode and skip any number of tracks. The company reported that the tier conditions may change before its full launch. This might have been discontinued (at least in some regions) according to an email sent to a redditor.


Monetization

In 2008, just after launch, the company made a loss of 31.8 million Swedish kronor (US$4.4 million). In October 2010, ''
Wired ''Wired'' (stylized as ''WIRED'') is a monthly American magazine, published in print and online editions, that focuses on how emerging technologies affect culture, the economy, and politics. Owned by Condé Nast, it is headquartered in San ...
'' reported that Spotify was making more money for labels in Sweden than any other retailer "online or off". Years after growth and expansion, a November 2012 report suggested strong momentum for the company. In 2011, it reported a near US$60 million net loss from revenue of $244 million, while it was expected to generate a net loss of $40 million from revenue of $500 million in 2012. Another source of income was music purchases from within the app, however this service was removed in January 2013. In May 2016, Spotify announced "Sponsored Playlists", a monetisation opportunity in which brands can specify the audiences they have in mind, with Spotify matching the marketer with suitable music in a playlist. That September, Spotify announced that it had paid a total of over $5 billion to the music industry. In June 2017, as part of renegotiated licenses with Universal Music Group and Merlin Network, Spotify's financial filings revealed its agreement to pay more than $2 billion in minimum payments over the next two years. , Spotify was not yet a profitable company. Spotify's revenue for Q1 2020 amounted to €1.85 billion ($2 billion). A large part of this sum, €1.7 billion ($1.84 billion), came from Spotify Premium subscribers. Gross profit in the same quarter amounted to €472 million ($511 million), with an operating loss of €17 million ($18 million). Despite subscriber and podcasts growth, during Q2 of 2020, Spotify reported a loss of €356 million (€1.91 per share). The "deeper" loss came as a result of the company's tax debt to over one-third of its employees in Sweden.


Funding

In February 2010, Spotify received a small investment from
Founders Fund Founders Fund is a San Francisco-based venture capital firm. Formed in 2005, Founders Fund had more than $11 billion in aggregate capital under management as of 2022. The firm invests across all stages and sectors, including aerospace, artificia ...
, where board member
Sean Parker Sean Parker (born December 3, 1979) is an American entrepreneur and philanthropist, most notable for co-founding the file-sharing computer service Napster, and serving as the first president of the social networking website Facebook. He also ...
was recruited to assist Spotify in "winning the labels over in the world's largest music market". In June 2011, Spotify secured $100 million of funding and planned to use this to support its US launch. The new round of funding valued the company at $1 billion. A Goldman Sachs-led round of funding closed in November 2012, raising around $100 million at a $3 billion valuation. In April 2015, Spotify began another round of fundraising, with a report from ''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' stating it was seeking $400 million, which would value the company at $8.4 billion. The financing was closed in June 2015, with Spotify raising $526 million, at a value of $8.53 billion. In January 2016, Spotify raised another $500 million through convertible bonds. In March 2016, Spotify raised $1 billion in financing by debt plus a discount of 20% on shares once the
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
(IPO) of shares takes place. The company was, according to ''
TechCrunch TechCrunch is an American online newspaper focusing on high tech and startup companies. It was founded in June 2005 by Archimedes Ventures, led by partners Michael Arrington and Keith Teare. In 2010, AOL acquired the company for approximately $ ...
'', planning to launch on the stock market in 2017, but in 2017 it was seen as planning on doing the IPO in 2018 in order to "build up a better balance sheet and work on shifting its business model to improve its margins".


Downloads

In March 2009, Spotify began offering
music download A music download (commonly referred to as a digital download) is the digital transfer of music via the Internet into a device capable of decoding and playing it, such as a personal computer, portable media player, MP3 player or smartphone. T ...
s in the United Kingdom, France, and Spain. Users could purchase tracks from Spotify, which partnered with
7digital 7digital Group Plc is a British publicly listed company that offers access to music, tracking and reporting for clients. London-based, 7digital provides end-to-end music services for the fitness, social media, DSPs, and gaming industries with b ...
to incorporate the feature. The ability to purchase and download music tracks via the app was removed on 4 January 2013.


Spotify for Artists

In November 2015, Spotify introduced a "Fan Insights" panel in limited beta form, letting artists and managers access data on monthly listeners, geographical data, demographic information, music preferences and more. In April 2017, the panel was upgraded to leave beta status, renamed as "Spotify for Artists", and opened to all artists and managers. Additional features include the ability to get "verified" status with a blue checkmark on an artist's profile, receiving artist support from Spotify, customising the profile page with photos and promoting a certain song as their "pick". In September 2018, Spotify announced "Upload Beta", allowing artists to upload directly to the platform instead of going through a
distributor A distributor is an enclosed rotating switch used in spark-ignition internal combustion engines that have mechanically timed ignition. The distributor's main function is to route high voltage current from the ignition coil to the spark plug ...
or
record label A record label, or record company, is a brand or trademark of music recordings and music videos, or the company that owns it. Sometimes, a record label is also a publishing company that manages such brands and trademarks, coordinates the produ ...
. The feature was rolled out to a small number of US-based artists by invitation only. Uploading was free and artists received 100% of the revenue from songs they uploaded; artists were able to control when their release went public. On 1 July 2019, Spotify deprecated the program and announced plans to stop accepting direct uploads by the end of that month and eventually remove all content uploaded in this manner.


Industry initiatives

In June 2017, ''
Variety Variety may refer to: Arts and entertainment Entertainment formats * Variety (radio) * Variety show, in theater and television Films * ''Variety'' (1925 film), a German silent film directed by Ewald Andre Dupont * ''Variety'' (1935 film), ...
'' reported that Spotify would announce "Secret Genius", a new initiative aimed at highlighting songwriters and producers, and the effect those people have on the music industry and the artists' careers. The project, which would feature awards, "Songshops" songwriting workshops, curated playlists, and podcasts, is an effort to "shine a light on these people behind the scenes who play such a big role in some of the most important moments of our lives. When the general public hears a song, they automatically associate it with the artist who sings it, not the people behind the scenes who make it happen, so we thought the title Secret Genius was appropriate", Spotify's former Global Head of Creator Services Troy Carter told ''Variety'' the first awards ceremony would take place in late 2017, and was intended to honour "the top songwriters, producers and publishers in the industry as well as up-and-coming talent." Additionally, as part of "The Ambassador Program", 13 songwriters would each host a Songshop workshop, in which their peers would collaboratively attempt to create a hit song, with the first workshop taking place in Los Angeles in June 2017. In October 2017, Spotify launched "Rise", a program aimed at promoting emerging artists. In February 2020, Spotify announced it would be featuring new songwriter pages and 'written by' playlists. This was aimed at giving fans a behind the scenes look at the process of some of their favorite songwriters. Initial pages added included Justin Trantor,
Meghan Trainor Meghan Elizabeth Trainor (born December 22, 1993) is an American singer-songwriter and television personality. She rose to prominence after signing with Epic Records in 2014 and releasing her debut single "All About That Bass", which reached ...
, and Missy Elliott. Spotify thereafter announced it was planning to add more of these pages and playlists to highlight songwriters. In January 2021, Spotify made a selection of audiobooks available on the platform as a test of developing a greater breadth of content for users. The addition of audiobooks to the service would create similar offerings to that of Amazon's
Audible Audible may refer to: * Audible (service), an online audiobook store * Audible (American football), a tactic used by quarterbacks * ''Audible'' (film), a short documentary film featuring a deaf high school football player * Audible finish or ru ...
. In 2020, Spotify partnered with
Wizarding World The Wizarding World (previously known as J. K. Rowling's Wizarding World) is a fantasy media franchise and shared fictional universe centred on the ''Harry Potter'' novel series by J. K. Rowling. A series of films have been in production si ...
to release a series of recorded readings of ''Harry Potter and the Philosopher's Stone,'' by various stars of the franchise.


Stations by Spotify

On 31 January 2018, Spotify started testing a new Pandora-styled standalone app called Stations by Spotify for Australian Android users. It featured 62 music channels, each devoted to a particular genre. Spotify itself has two channels named after its playlists that link directly to the users' profile: "Release Radar" and "Discover Weekly". The aim was to help users to listen to the music they want without information overload or spending time building their own playlists. At launch, the skipping feature was not featured to "reinforce the feel of radio", but it was quietly added later and with no limits. Songs can be "loved" but cannot be "hated". If a song is "loved", a custom radio channel will be created based on it, and when there are at least 15 of these songs, a "My Favourites" channel is unlocked. The standalone app was made available to all iOS and Android users in the United States since 4 June 2019. Spotify announced the app would be shut down on 16 May 2022. The company said users would be able to login into the main Spotify app with their Stations account and transfer their stations into Spotify.


Platforms

Spotify has client software currently available for Windows,
macOS macOS (; previously OS X and originally Mac OS X) is a Unix operating system developed and marketed by Apple Inc. since 2001. It is the primary operating system for Apple's Mac computers. Within the market of desktop and lapt ...
, Wear OS, Android,
iOS iOS (formerly iPhone OS) is a mobile operating system created and developed by Apple Inc. exclusively for its hardware. It is the operating system that powers many of the company's mobile devices, including the iPhone; the term also include ...
,
watchOS watchOS is the operating system of the Apple Watch, developed by Apple Inc. It is based on iOS, the operating system used by the iPhone, and has many similar features. It was released on April 24, 2015, along with the Apple Watch, the only d ...
,
iPadOS iPadOS is a mobile operating system developed by Apple Inc. for its iPad line of tablet computers. It is a rebranded variant of iOS, the operating system used by Apple's iPhones, renamed to reflect the diverging features of the two product ...
, PlayStation 4, PlayStation 5,
Xbox One The Xbox One is a home video game console developed by Microsoft. Announced in May 2013, it is the successor to Xbox 360 and the third base console in the Xbox series of video game consoles. It was first released in North America, parts of ...
and Xbox Series X/S game consoles. There is an official, although unsupported Linux version. Spotify also offers a proprietary protocol known as "Spotify Connect", which lets users listen to music through a wide range of entertainment systems, including speakers, receivers, TVs, cars, and smartwatches. Spotify also has a web player (open.spotify.com). Offline Music listening is possible on watchOS and more recently added to google's WearOS for those with premium subscriptions. Unlike the apps, the web player does not have the ability to download music for offline listening. In June 2017, Spotify became available as an app through
Windows Store Microsoft Store (formerly known as Windows Store) is a digital distribution platform operated by Microsoft. It started as an app store for Windows 8 and Windows Server 2012 as the primary means of distributing Universal Windows Platform app ...
.


Features

In Spotify's apps, music can be browsed or searched for via various parameters, such as artist, album, genre, playlist, or record label. Users can create, edit and share playlists, share tracks on
social media Social media are interactive media technologies that facilitate the creation and sharing of information, ideas, interests, and other forms of expression through virtual communities and networks. While challenges to the definition of ''social medi ...
, and make playlists with other users. Spotify provides access to over 70 million songs, 2.2 million podcasts and 4 billion playlists. In November 2011, Spotify introduced a Spotify Apps service that made it possible for third-party developers to design applications that could be hosted within the Spotify computer software. The applications provided features such as synchronised lyrics, music reviews, and song recommendations. In June 2012, Soundrop became the first Spotify app to attract major funding, receiving $3 million from Spotify investor Northzone. However, after the June 2014 announcement of a Web
API An application programming interface (API) is a way for two or more computer programs to communicate with each other. It is a type of software interface, offering a service to other pieces of software. A document or standard that describes how ...
that allowed third-party developers to integrate Spotify content in their own web applications, the company discontinued its Spotify Apps platform in October, stating that its new development tools for the Spotify web player fulfilled many of the advantages of the former Spotify Apps service, but "would ensure the Spotify platform remained relevant and easy to develop on, as well as enabling you to build innovative and engaging music experiences". In April 2012, Spotify introduced a "Spotify Play Button", an embeddable music player that can be added to blogs, websites, or social media profiles, that lets visitors listen to a specific song, playlist, or album without leaving the page. The following November, the company began rolling out a web player, with a similar design to its computer programs, but without the requirement of any installation. In December 2012, Spotify introduced a "Follow" tab and a "Discover" tab, along with a "Collection" section. "Follow" lets users follow artists and friends to see what they are listening to, while "Discover" directs users to new releases as well as music, review, and concert recommendations based on listening history. Users can add tracks to a "Collection" section of the app, rather than adding them to a specific playlist. The features were announced by CEO Daniel Ek at a press conference, with Ek saying that a common user complaint about the service was that "Spotify is great when you know what music you want to listen to, but not when you don't". In May 2015, Spotify announced a new "Home" start-page that could recommend music. The company also introduced "Spotify Running", a feature aimed at improving music while running with music matched to running tempo, and announced that
podcast A podcast is a program made available in digital format for download over the Internet. For example, an episodic series of digital audio or video files that a user can download to a personal device to listen to at a time of their choosin ...
s and videos ("entertainment, news and clips") would be coming to Spotify, along with "Spotify Originals" content. In December 2015, Spotify debuted Spotify Wrapped, a program that creates playlists based on each user's most listened-to songs from the year. Users then can view and save this playlist at the end of the year. While it continued to provide users with an end-of-the-year wrap up, the playlist feature was later removed. In January 2016, Spotify and music annotation service
Genius Genius is a characteristic of original and exceptional insight in the performance of some art or endeavor that surpasses expectations, sets new standards for future works, establishes better methods of operation, or remains outside the capabili ...
formed a partnership, bringing annotation information from Genius into infocards presented while songs are playing in Spotify. The functionality is limited to selected playlists and was only available on Spotify's iOS app at launch, being expanded to the Android app in April 2017. This feature was known as "Behind the Lyrics". As of November 18, 2021, "Behind the Lyrics" has been replaced with auto-generated real-time lyrics due to consumer demand. The feature is powered by lyrics provider Musixmatch. In May 2017, Spotify introduced Spotify Codes for its mobile apps, a way for users to share specific artists, tracks, playlists or albums with other people. Users find the relevant content to share and press a "soundwave-style barcode" on the display. A camera icon in the apps' search fields lets other users point their device's camera at the code, which takes them to the same content. In January 2019, Spotify introduced Car View for Android, allowing devices running Android to have a compact Now Playing screen when the device is connected to a car's Bluetooth. Also in January 2019, Spotify beta-tested its Canvas feature, where artists and/or labels can upload looping 3 to 8-second moving visuals to their tracks, replacing album covers in the "Now Playing" view; users have the option to turn off this feature. Canvas is only available for Spotify's iOS and Android mobile apps. Months later, Spotify tested its own version of stories (the sharing format popularized by social apps) known as "Storyline", and the focus is on allowing artists to share their own insights, inspiration, details about their creative process or other meanings behind the music. In March 2021, Spotify announced an upcoming option for higher-resolution sound, Spotify Hi-Fi.


Playlists and discovery

In July 2015, Spotify launched Discover Weekly, a playlist generated weekly. Updated on Mondays, it provides users with music recommendations. In December 2015, ''
Quartz Quartz is a hard, crystalline mineral composed of silica ( silicon dioxide). The atoms are linked in a continuous framework of SiO4 silicon-oxygen tetrahedra, with each oxygen being shared between two tetrahedra, giving an overall chemical ...
'' reported that songs in Discover Weekly playlists had been streamed 1.7 billion times,. In March 2016, Spotify launched six playlists branded as Fresh Finds, including the main playlist and Fire Emoji, Basement, Hiptronix, Six Strings, and Cyclone (hip-hop, electronic, pop, guitar-driven, and experimental music respectively). The playlists spotlight songs by lesser-known musicians and their songs. In August 2016, Spotify launched Release Radar, a personalized playlist that allows users to stay up-to-date on new music released by the artists they listen to the most. It also helps users discover new music, by mixing in other artists' music. The playlist is updated every Friday, and is a maximum of two hours in length. The RADAR program is Spotify's global artist program, exclusively designed to help emerging artists worldwide reach the next stage in their careers and strengthen their connection to listeners. Spotify provides artists taking part in RADAR with resources and access to integrated marketing opportunities to help them boost their careers, in addition to expanded reach and exposure to 178 markets worldwide. In September 2016, Spotify introduced Daily Mix, a series of (up to six) playlists that mixes the user's favorite tracks with new, recommended songs. New users can access Daily Mix after approximately two weeks of listening to music through Spotify. Daily Mixes were only available on the Android and iOS mobile apps at launch, but the feature was later expanded to Spotify's computer app in December 2016. In 2017, Spotify introduced RapCaviar, a hip-hop playlist. Rap Caviar had 10.9 million followers by 2019, becoming one of Spotify's Top 5 playlists. RapCaviar was originally curated by Tuma Basa. It was relaunched by Carl Chery in 2019. In July 2018, Spotify introduced a beta feature that gives artists, labels, and teams an easy way to submit unreleased music directly to Spotify's editorial team for playlist consideration. In June 2019, Spotify launched a custom playlist titled "Your Daily Drive" that closely replicates the
drive time Drive time is the daypart in which radio broadcasters can reach the most people who listen to car radios while driving, usually to and from work, or on public transportation. Drive-time periods are when the number of radio listeners in this cl ...
format of many traditional radio stations. It combines short-form podcast news updates from
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
,
NPR National Public Radio (NPR, stylized in all lowercase) is an American privately and state funded nonprofit media organization headquartered in Washington, D.C., with its NPR West headquarters in Culver City, California. It differs from other ...
, and PRI with a mix of a user's favorite songs and artists interspersed with tracks the listener has yet to discover. "Your Daily Drive", which is found in a user's library under the "Made For You" section, updates throughout the day. In May 2020, Spotify introduced the Group Session feature. This feature allows two or more Premium users in the same location to share control over the music that's being played. The Group Session feature was later expanded to allow any Premium user to join/participate in a Group Session, with a special link the host can send to participants. In July 2021, Spotify launched the "What's New" feed, a section that collects all new releases and episodes from artists and podcasts that the user follows. The feature is represented by a bell icon on the app's main page and is available on iOS and Android. In November 2021, Spotify launched the City and Local Pulse charts, aimed at representing the songs listened to in major cities around the world. The charts are available for 200 cities with the most listeners on Spotify.


Listening limitations

Spotify has experimented with different limitations to users' listening on the Free service tier. In April 2011, Spotify announced via a blog post that they would drastically cut the amount of music that free members could access, effective 1 May 2011. The post stated that all free members would be limited to ten hours of music streaming per month, and in addition, individual tracks were limited to five plays. New users were exempt from these changes for six months. In March 2013, the five-play individual track limit was removed for users in the United Kingdom, and media reports stated that users in the United States, Australia, and New Zealand never had the limit in the first place. In December 2013, CEO Daniel Ek announced that Android and iOS smartphone users with the free service tier could listen to music in Shuffle mode, a feature in which users can stream music by specific artists and playlists without being able to pick which songs to hear. Mobile listening previously was not allowed in Spotify Free accounts. Ek stated that "We're giving people the best free music experience in the history of the smartphone." This shuffle feature is not available on Android and iOS tablets, or computers. In January 2014, Spotify removed all time limits for Free users on all platforms, including on computers, which previously had a 10-hour monthly listening limit after a 6-month grace period. In April 2018, Spotify began to allow Free users to listen on-demand to whatever songs they want for an unlimited number of times, as long as the song is on one of the user's 15 personalized discovery playlists. Before April 2020, all service users were limited to 10,000 songs in their library, after which they would receive an "Epic collection, friend" notification and would not be able to save more music to their library. Adding playlists at this point also arbitrarily removed older playlists from the users' library. Spotify later removed this limit.


Technical information

Spotify is proprietary and uses digital rights management (DRM) controls. Spotify's terms and conditions do not permit users to reverse-engineer the application. Spotify allows users to add local audio files for music not in its catalog into the user's library through Spotify's desktop application, and then allows users to synchronize those music files to Spotify's mobile apps or other computers over the same
Wi-Fi Wi-Fi () is a family of wireless network protocols, based on the IEEE 802.11 family of standards, which are commonly used for local area networking of devices and Internet access, allowing nearby digital devices to exchange data by radio wav ...
network as the primary computer by creating a Spotify playlist, and adding those local audio files to the playlist. Audio files must either be in the .mp3, .mp4 (.mp4 files that have video streams are not supported), or .m4p media formats. This feature is available only for Premium subscribers. Spotify has a median playback latency of 265 ms (including local
cache Cache, caching, or caché may refer to: Places United States * Cache, Idaho, an unincorporated community * Cache, Illinois, an unincorporated community * Cache, Oklahoma, a city in Comanche County * Cache, Utah, Cache County, Utah * Cache County ...
). In April 2014, Spotify moved away from the
peer-to-peer Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the network. They are said to form a peer-to-peer ...
(P2P) system they had used to distribute music to users. Previously, a desktop user would listen to music from one of three sources: a cached file on the computer, one of Spotify's servers, or from other subscribers through the P2P system. P2P, a well-established Internet distribution system, served as an alternative that reduced Spotify's server resources and costs. However, Spotify ended the P2P setup in 2014, with Spotify's Alison Bonny telling
TorrentFreak __NOTOC__ TorrentFreak (TF) is a blog dedicated to reporting the latest news and trends on the BitTorrent protocol and file sharing, as well as on copyright infringement and digital rights. The website was started in November 2005 by a Dutchma ...
: "We're gradually phasing out the use of our desktop P2P technology which has helped our users enjoy their music both speedily and seamlessly. We're now at a stage where we can power music delivery through our growing number of servers and ensure our users continue to receive a best-in-class service." Originally Spotify had their own servers but in 2016 most of their infrastructure was migrated to
Google cloud Google Cloud Platform offers numerous integrated cloud-computing services, including compute, network, and storage. Products Past and present products under the Google Cloud platform include: Current * Google Cloud Datastore, a NoSQL databa ...
.


Car Thing

Spotify first announced a voice-activated music-streaming gadget for cars in May 2019. Named the Car Thing, it represents the music-streaming service's first entry into hardware devices. In early 2020, as part of filings to the Federal Communications Commission (FCC), submitted images of the device that make it seem much more like a miniature infotainment screen. In April 2021, Spotify rolled out its own voice assistant with the hands-free wake word: "Hey Spotify". Using this, users can perform various actions such as pulling playlists, launching radio stations, playing or pausing songs. This voice-based virtual assistant may be intended more towards Spotify's own hardware such as its "Car Thing".


Geographic availability

The company is incorporated in Luxembourg as Spotify Technology S.A., and is headquartered in Stockholm, Sweden, with offices in 16 countries around the world. Following the
2022 Russian invasion of Ukraine On 24 February 2022, in a major escalation of the Russo-Ukrainian War, which began in 2014. The invasion has resulted in tens of thousands of deaths on both sides. It has caused Europe's largest refugee crisis since World War II. ...
, Spotify temporarily closed its office in Russia and suspended both premium and free services from the country until further notice. However, the support service continues to work for Russian users. *Suspended on 25/3/2022 until further notice.


Sponsorship

*
Barcelona Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within ci ...
* Barcelona Femení


Accolades

In September 2010, the
World Economic Forum The World Economic Forum (WEF) is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer and economist Klaus Schwab. The foundation, ...
(WEF) announced the company as a Technology Pioneer for 2011.


Criticism

Spotify has attracted significant criticism since its 2006 launch. The primary point of criticism centres around what artists, music creators, and the media have described as "unsustainable" compensation. Unlike physical sales or legal downloads (both of which were the main medium of listening to music at the time), which pay artists a fixed amount per song or album sold, Spotify pays royalties based on their "market share": the number of streams for their songs as a proportion of total songs streamed on the service. Spotify distributes approximately 70% of its total revenue to rights-holders, who will then pay artists based on their individual agreements. Worldwide, 30,000 musicians have joined the organization UnionOfMusicians (UMAW). UMAW organized protests in 31 cities in March 2021 and its campaign #JusticeAtSpotify is demanding more transparency and a compensation of one cent per stream. Spotify has been criticised by artists and producers including
Thom Yorke Thomas Edward Yorke (born 7 October 1968) is an English musician and the main vocalist and songwriter of the rock band Radiohead. A multi-instrumentalist, he mainly plays guitar and keyboards and is noted for his falsetto. He has been descri ...
and
Taylor Swift Taylor Alison Swift (born December 13, 1989) is an American singer-songwriter. Her discography spans multiple genres, and her vivid songwriting—often inspired by her personal life—has received critical praise and wide media coverage. Bor ...
, who have argued that Spotify does not fairly compensate musicians, and both withdrew their music from the service. Their catalogues returned to the service in 2017. While the streaming music industry in general faces the same critique about inadequate payments, Spotify, being the leading service, faces particular scrutiny due to its free service tier, allowing users to listen to music for free, though with advertisements between tracks. The free service tier has led to a variety of major album releases being delayed or withdrawn from the service. In response to the allegations about unfair compensation, Spotify claims that it is benefitting the industry by migrating users away from unauthorized copying and less monetized platforms to its free service tier, and then downgrades that service until they upgrade to paid accounts. A study has shown that
record label A record label, or record company, is a brand or trademark of music recordings and music videos, or the company that owns it. Sometimes, a record label is also a publishing company that manages such brands and trademarks, coordinates the produ ...
s keep a high amount of the money earned from Spotify, and the CEO of Merlin Network, a representative body for over 10,000 independent labels, has also observed significant yearly growth rates in earnings from Spotify, while clarifying that Spotify pays labels, not artists. In 2017, as part of its efforts to renegotiate licence deals for an interest in going public, Spotify announced that artists would be able to make albums temporarily exclusive to paid subscribers if the albums are part of
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch– American multinational music corporation under Dutch law. UMG's corporate headquarters are located in Hilversum, Netherlands and its ...
or the Merlin Network. In May 2018, Spotify attracted criticism for its "Hate Content & Hateful Conduct policy" that removed the music of R. Kelly and
XXXTentacion Jahseh Dwayne Ricardo Onfroy (January 23, 1998 – June 18, 2018), known professionally as XXXTentacion, was an American rapper and singer-songwriter. Though a controversial figure due to his widely publicized legal troubles, XXXTentacion ga ...
from its editorial and algorithmic playlists because "When we look at promotion, we look at issues around hateful conduct, where you have an artist or another creator who has done something off-platform that is so particularly out of line with our values, egregious, in a way that it becomes something that we don't want to associate ourselves with." R. Kelly has faced accusations of sexual abuse, while XXXTentacion was on trial for domestic abuse in a case that did not reach a judgement before his death that June. This policy was revoked in June because the company deemed the original wording to be too "vague"; they stated that "Across all genres, our role is not to regulate artists. Therefore, we are moving away from implementing a policy around artist conduct". However, artists such as Gary Glitter and
Lostprophets Lostprophets (stylised as lostprophets) were a Welsh Rock music, rock band from Pontypridd, formed in 1997 by singer and lyricist Ian Watkins (Lostprophets singer), Ian Watkins and guitarist Lee Gaze. The band was founded after their former band ...
are still hidden from Spotify's radio stations. According to some computer science and music experts, various music communities are often ignored or overlooked by music streaming services, such as Spotify. The most commonly perceived error is said to be caused by a lack of diverse scope within curation staff, including overlooking mainstay artists in large genres, potentially causing a categorical homogenization of musical styles; even impacting mainline artists like within hip hop with A Tribe Called Quest. This can potentially have a negative impact on heritage styles, amongst both popular and traditional genres of
New Mexico music New Mexico music ( es, música nuevo mexicana) is a genre of music that originated in the US state of New Mexico, it derives from Pueblo music in the 13th century, and with the folk music of Hispanos during the 16th to 19th centuries in Santa F ...
and
folk music Folk music is a music genre that includes traditional folk music and the contemporary genre that evolved from the former during the 20th-century folk revival. Some types of folk music may be called world music. Traditional folk music has b ...
, and possibly hindering the growth of styles such as
country rap Country rap (or country hip hop and sometimes hick hop) is a fusion genre of popular music, blending country music with hip hop–style singing or rapping. History Prototypes Early influences on the emergence of country rap as a distinct genre ...
and contemporary Christian music. In 2016, Spotify was criticized for allegedly making certain artists' music harder to find than others as these artists would release their music to the rival streaming service
Apple Music Apple Music is a music, audio and video streaming service developed by Apple Inc. Users select music to stream to their device on-demand, or they can listen to existing playlists. The service also includes the Internet radio stations Apple M ...
before releasing it to Spotify. In March 2021, David Dayen argued in ''The American Prospect'' that musicians were in peril due to monopolies in streaming services like Spotify. Daniel Ek, co-founder and CEO of Spotify, discussed "what he called an artist-friendly streaming solution." He explained, "An extension of the internet radio craze of the early 2000s, Spotify would license content from record labels, and then support artists as people listened to their music." However, Dayen noted that such services draw revenue from advertisements, the promise of audience growth to investors, and data collection.


''The Joe Rogan Experience''

In 2020, Spotify received criticism from anti-misinformation groups when conspiracy theorist
Alex Jones Alexander Emerick Jones (born February 11, 1974) is an American far-right and alt-right radio show host and prominent conspiracy theorist. He hosts ''The Alex Jones Show'' from Austin, Texas, which the Genesis Communications Network broadcas ...
appeared on
Joe Rogan Joseph James Rogan (born August 11, 1967) is an American UFC color commentator, podcaster, comedian, actor, and former television presenter. He hosts ''The Joe Rogan Experience'', a podcast in which he discusses current events, comedy, polit ...
's podcast, ''
The Joe Rogan Experience ''The Joe Rogan Experience'' is a podcast hosted by American comedian, presenter, and UFC color commentator Joe Rogan. It launched on December 24, 2009, on YouTube by Rogan and comedian Brian Redban, who was its sole co-host and producer unti ...
''. Spotify's employees raised concerns about Jones' appearance on the show. In 2021, Spotify removed 42 episodes of Rogan's podcast. In January 2022, 270 scientists, physicians, professors, doctors, healthcare workers, veterinarians, a dentist, psychologists, physicians' assistants, medical students, an engineer and a podcast host wrote an open letter to Spotify expressing concern over "false and societally harmful assertions" on ''The Joe Rogan Experience'' and asked Spotify to "establish a clear and public policy to moderate misinformation on its platform". The 270 signatories objected to Rogan broadcasting
COVID-19 misinformation False information, including intentional disinformation and conspiracy theories, about the scale of the COVID-19 pandemic and the origin, prevention, diagnosis, and treatment of the disease has been spread through social media, text messagin ...
, citing "a highly controversial" episode featuring guest Robert Malone (#1757). The episode has been criticized for "promoting baseless conspiracy theories", including "an unfounded theory that societal leaders have 'hypnotized' the public." The signatories assert: "Dr. Malone is one of two recent JRE guests who has compared pandemic policies to
the Holocaust The Holocaust, also known as the Shoah, was the genocide of European Jews during World War II. Between 1941 and 1945, Nazi Germany and its collaborators systematically murdered some six million Jews across German-occupied Europe; ...
. These actions are not only objectionable and offensive, but also medically and culturally dangerous." The signatories also note that Malone was suspended from Twitter for spreading misinformation about COVID-19. On 26 January 2022,
Neil Young Neil Percival Young (born November 12, 1945) is a Canadian-American singer and songwriter. After embarking on a music career in Winnipeg in the 1960s, Young moved to Los Angeles, joining Buffalo Springfield with Stephen Stills, Richie Fur ...
removed his music from Spotify after they refused to remove the podcast. Joni Mitchell subsequently removed her music in support of Young. Other artists and podcasters, such as Nils Lofgren, Brené Brown and Crosby, Stills, & Nash, also announced a boycott of Spotify.
Prince Harry Prince Harry, Duke of Sussex, (Henry Charles Albert David; born 15 September 1984) is a member of the British royal family. He is the younger son of Charles III and his first wife Diana, Princess of Wales. He is fifth in the line of succ ...
and Meghan, Duchess of Sussex, who signed a multi-year partnership with Spotify, said that since April 2021 they had been "expressing concerns" over COVID-19 misinformation on the platform. Amid the controversy, as of 28 January 2022 Spotify's stock had fallen 12% week-on-week, a loss of $4 billion in market capitalization. By 30 January 2022, this number had grown to a loss of $6.7 billion in market value, a fall of 17% week-on-week, and a fall of 26% year-to-date. Spotify's stock fell by 13% after the company reported fourth-quarter earnings on February 2, 2022. Although Ek addressed the Rogan controversy during the earnings call, the loss in value was attributed to the company's guidance on Q1 user growth, which did not meet analyst expectations. Spotify promised to add content advisories for anything containing discussions related to COVID-19 and posted additional rules. Rogan apologized for his role in the controversy, and defended his interviews with two controversial guests, Robert W. Malone and Peter A. McCullough, as "highly credentialed, very intelligent, very accomplished people, and they have an opinion that is different from the mainstream narrative". Rogan said he agreed with Spotify's plan to label episodes including COVID-19 discussions and would try to "have more experts with differing opinions, right after the controversial ones". In February 2022, Spotify removed about 70 more episodes of ''The Joe Rogan Experience'', reportedly at Rogan's own request. Musician
India Arie India Arie Simpson (born October 3, 1975), also known as India Arie (sometimes styled as india.arie), is an American singer and songwriter. She has sold over five million records in the US and ten million worldwide. She has won four Grammy Awards ...
shared a compilation of clips in which Rogan used the " n word" on the podcast, and a clip in which Rogan appears to liken being around black people with the film ''
Planet of the Apes ''Planet of the Apes'' is an American science fiction media franchise consisting of films, books, television series, comics, and other media about a world in which humans and intelligent apes clash for control. The franchise is based on Frenc ...
''. Arie announced that she was also boycotting Spotify. Rogan posted an apology, saying it was "regretful and shameful", but said that the clips were "taken out of context". In a message to employees, Ek said: "While I strongly condemn what Joe has said and I agree with his decision to remove past episodes from our platform, I realize some will want more. And I want to make one point very clear – I do not believe that silencing Joe is the answer." In July 2022, Crosby, Stills & Nash returned to the platform, although the group's songs with Neil Young were not brought back. The group stated that streaming profits from the newly returned songs will be donated to charities supporting those affected by COVID-19 for "at least a month".


See also

* Comparison of music streaming services *
List of podcast clients A podcast client, or podcatcher, is a computer program used to stream or download podcasts, usually via an RSS or XML feed. While podcast clients are best known for streaming and downloading podcasts, many are also capable of downloading video ...
*
Tech companies in the New York metropolitan area Tech or The Tech may refer to: * An abbreviation of technology or technician *Tech Dinghy, an American sailing dinghy developed at MIT *Tech (mascot), the mascot of Louisiana Tech University, U.S. * Tech (river), in southern France * "Tech" (''S ...
*
List of most-streamed songs on Spotify The following list contains the top 100 songs with the most streams on the audio streaming platform Spotify. As of , only two songs have reached 3 billion streams - Ed Sheeran's "Shape of You" and The Weeknd's "Blinding Lights", and a total o ...
*
List of most-streamed artists on Spotify This list contains the most-streamed artists on the audio streaming platform Spotify. As of , The Weeknd has the most monthly listeners on Spotify for a male artist, Ariana Grande has the most monthly listeners on Spotify for a female artist a ...


References


Further reading

* Maria Eriksson et al. (2019): ''Spotify Teardown: Inside the Black Box of Streaming Music'', The MIT Press, .


External links

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