Spotify offers digital copyright restricted recorded music and podcasts, 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. Spotify is currently available in 180+ countries, as of October 2021. Users can search for music based on artist, album, or genre, and can create, edit, and share playlists.
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.
Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the number of artist streams as a proportion of total songs streamed. It distributes approximately 70% of its total revenue to rights holders (often record labels), who then pay artists based on individual agreements. According to Ben Sisario of The New York Times, approximately 13,000 out of seven million artists on Spotify generated $50,000 or more in payments in 2020.
(WOWTIMES) Spotify’s history and achievements
- 2006: Spotify is officially founded by Daniel Ek and Martin Lorentzon in Stockholm, Sweden.
- 2008: Spotify raised $21.6M Series A round (A round is the name typically given to a company's first significant round of venture capital financing). Later, October 7 was the official European release of Spotify.
- 2009: Spotify was endorsed by Mark Zuckerburg with a Facebook status reading: "Spotify is so good."
- 2011: Spotify is finally launched in the United States and is integrated with Facebook, a direct correlation with its sudden popularity.
- 2014: Spotify partnered with Uber and launched a family plan that offered 50% off each new member.
- 2015: Spotify partnered with PlayStation Network. At this point, the service had 20 million paying users, 75 million total users, and had paid $3 billion to artists.
- 2017: Spotify announced expansion of its United States operations in Lower Manhattan, New York City. Microsoft 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.
- 2022: Spotify had 182 million premium subscribers. Spotify became the official streaming partner of FC Barcelona.
Spotify is available in most of Europe, as well as the Americas and Oceania, with a total availability in 184 markets. The service is available on most devices including Windows, macOS, and Linux computers, iOS and Android smartphones and tablets, smart home devices such as the Amazon Echo and Google Nest lines of products and digital media players like Roku.
According to Wikipedia