Spotify
Overview
Spotify is a Swedish-based audio streaming and media services provider, launched in October 2008 by Daniel Ek and Martin Lorentzon. The platform is owned by Spotify AB, a publicly traded company on the New York Stock Exchange since 2018.
History
Spotify was developed in 2006 by a team at Spotify AB, in Stockholm, Sweden. The company was founded by Daniel Ek, former CTO of Stardoll, and Martin Lorentzon, co-founder of TradeDoubler. The official launch of Spotify occurred on 7 October 2008. While free accounts remained available by invitation to manage the growth of the service, the launch opened paid subscriptions to everyone.
Business Model
Spotify operates under a freemium business model, with two music streaming tiers: Spotify Free (160kbit/s) and Spotify Premium (up to 320kbit/s). Premium subscriptions include additional features such as improved streaming quality and music downloads for offline listening.
Platform and Features
Spotify's desktop client is compatible with Windows, macOS, and Linux computers, with mobile apps available for iOS, Android, and Windows Phone devices. The platform also supports smart speakers and smart TVs.
User Base and Market Performance
As of October 2021, Spotify had 381 million active users, including 172 million paying subscribers. Spotify is available in most of Europe, the Americas, Australia, New Zealand, and parts of Africa and Asia.
Criticism and Controversies
Spotify has faced criticism from artists and producers including Taylor Swift and Thom Yorke, who have argued that it does not fairly compensate musicians.