Daniel Ek, co-founder and CEO of Spotify, discussed “what he called an artist-friendly streaming solution”. However, artists such as Gary Glitter and Lostprophets are still hidden from Spotify’s radio stations. In May 2018, Spotify attracted criticism for its “Hate Content & Hateful Conduct policy” that removed the music of R. A study has shown that record labels 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. The free service tier has led to a variety of major album releases being delayed or withdrawn from the service.
- As of 2022, Spotify is the current sponsor of Spanish football club FC Barcelona, with music artists like Drake, Travis Scott, and Ed Sheeran collaborating with the club by changing their shirts into their artist logo, sometimes used for album promotions.
- Despite the extensive global coverage, the service remains unavailable in several countries and territories, including Afghanistan, British Indian Ocean Territory, Central African Republic, China, Cuba, Eritrea, Iran, Myanmar, North Korea, Russia, Somalia, South Sudan, Sudan, Syria, Turkmenistan, and Yemen.
- Spotify supports integration with DJ software, allowing DJs to mix with music streamed from the platform.
- 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.
- 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.
- Users can refine playlists with additional instructions, such as “more upbeat” or “happier songs”.
- However, there has been some concern about the music streaming platform’s social media features.
Music Downloader / MP3 Player
Swedish labor disputes are also happening at Tesla and Klarna as of 2024update. Spotify recognizes trade unions at its US podcasting subsidiaries The Ringer and Spotify Studios since 2019. In December 2025, over 300 terabytes of files were scraped from Spotify’s servers and uploaded to Anna’s Archive, totalling 86 million songs uploaded from 2007 to July 2025 that account for 37% of all songs and 99.6% of all listens, as well as 256 million rows of song metadata. Spotify supports integration with DJ software, allowing DJs to mix with music streamed from the platform. The testing was very limited in nature and was only available on Spotify’s Android app in the US. Some artists included in this initial test phase were Steve Aoki and the Wombats.
Acquisitions, podcasting and exclusivity deals
Using PC streaming, a similar structure to the one used today allowed the listener to play songs freely, but with ads every 4–7 songs depending on listening duration. Ek’s initial pitch to Lorentzon was not initially related to music, but rather a way for streaming content such as video, digital films, images or music to drive advertising revenue. While certain musicians laud the service for offering a lawful option to combat piracy and for remunerating artists each time their music is played, others have voiced objections to Spotify’s royalty structure and its effect on record sales. Operating as a freemium service, the basic features are free with advertisements and limited control, while additional features, such as offline listening and commercial-free listening, are offered via paid subscriptions. Spotifya is a Swedish audio streaming and media service provider founded in April 2006 by Daniel Ek and Martin Lorentzon.
- The company was, according to TechCrunch, planning to launch on the stock market in 2017, but in 2017 it was seen as planning on doing the IPO in 2018 to “build up a better balance sheet and work on shifting its business model to improve its margins”.
- Also the same month, Spotify bought the exclusive rights to the Call Her Daddy podcast.
- Two more partnerships were announced in March; one with WNYC Studios, and one with Waze.
- On 26 January, Neil Young removed his music from Spotify after they refused to remove the podcast.
- In 2024, Spotify Wrapped, which has become a key marketing strategy for the company, was criticised for appearing to rely on AI-generated content and producing uninteresting insights.
- 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.
Demus: Easy Music Streaming
In November 2023, Spotify announced a new royalty model taking effect in 2024, aiming to reduce the amount of “fraudulent” royalties collected from “functional” non-music tracks with short lengths (such as environmental sounds and white noise). Spotify generates revenue by selling premium streaming subscriptions to users and advertising placements to third parties. In February 2018, Spotify integrated with the gaming-oriented voice chat service Discord 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”.
Streaming records
It also said that Apple believed Spotify users on the app store were Apple’s customers and not Spotify’s. In March 2023, Spotify announced a partnership with Patreon, which Spotify claimed would “enable creators to expand their creative business through direct payments from fans, and allow fans to listen to their Patreon content on Spotify”. In May 2022, Spotify announced a partnership with the online game platform and game creation system Roblox, the partnership saw Spotify as the first streaming brand to have a presence within the game with the launch of “Spotify Island”.
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. In a comment to TechCrunch, Spotify said that Seed Scientific’s team would lead an advanced analytics unit within the company, focused on developing data services. On 3 July 2020, cybersecurity firm VPNMentor discovered a database containing 380 million individual records, including the logins and passwords of Spotify users. It was announced later in April that this type of agreement would be extended to indie artists signed to the Merlin Network agency. New reports in April confirmed that Spotify and Universal Music Group 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.
One year later, in 31 cities worldwide, 27,500 musicians joined UMAW’s campaign #JusticeAtSpotify to demand a compensation of one cent per audio stream. The United Musicians and Allied Workers campaigns for a fairer redistribution and compensation system for musicians. In November 2022, Henry Catalini Smith, a Spotify engineer in Malmö, set up the channel #kollektivavtal in the internal company Slack, which means “collective agreement” in Swedish.
The primary point of criticism centers around what artists, music creators, and the media have described as “unsustainable” compensation. Spotify Wrapped had generated two billion impressions worldwide, and more ninety million Spotify users share their Spotify Wrapped statistics online, especially through social media. Spotify also has a ‘blend’ feature in which two users’ music preferences are mixed in a shared playlist. Spotify had added social media-related features to its platform, especially to compete for ad revenue and to increase its media-related users.
Contents
Artists through social media platforms, especially TikTok, often got their popularity boost through Spotify. Artists through Spotify can sell tickets to their music venue, promote their merchandise, add their videos as stories through Spotify clips, and promote new releases of their work through countdown pages. Ahead of Spotify Wrapped 2024, Spotify changed its API so that modded versions of the client would not work. Audio files must either be in the .mp3, .mp4 (.mp4 files that have video streams are not supported), or .m4p media formats. All other streams of selected songs outside of Spotify Radio and Autoplay remain commission-free. One such feature is a tool that Spotify rolled out in March 2023, called “Discovery Mode”.
The changes faced a mixed reaction from the music industry, who believed that it would be detrimental to emerging musicians, but would make a larger share of total royalty payments available to musicians. In 2013, Spotify revealed that it paid artists an average of $0.007 per stream. 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.
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 April 2017, the panel was upgraded to leave beta status, renamed as “Spotify for Artists”, and opened to all artists and managers. In March 2009, Spotify began offering music downloads in the United Kingdom, France, and Spain. The company was, according to TechCrunch, planning to launch on the stock market in 2017, but in 2017 it was seen as planning on doing the IPO in 2018 to “build up a better balance sheet and work on shifting its business model to improve its margins”. In April 2015, Spotify began another round of fundraising, with a report from The Wall Street Journal stating it was seeking $400 million (equivalent to $515,700,000 in 2024), which would value the company at $8.4 billion (equivalent to $10,831,000,000 in 2024). In February 2010, Spotify received a small investment from Founders Fund, where board member Sean Parker was recruited to assist Spotify in “winning the labels over in the world’s largest music market”.
Spotify gets its content from major record labels as well as independent artists and pays copyright holders royalties for streaming music. In May 2023, Spotify removed tens of thousands of songs, roughly 7% of the tracks uploaded by the Boomy, due to suspected “artificial streaming”, the practice of using online bots to inflate the listening statistics. On October 6, 2025, Spotify announced a partnership with OpenAI to bring music and podcast recommendations inside ChatGPT, allowing Spotify users to discover and queue new music through conversations, rather than search. In March 2017, Spotify announced a partnership with the South by Southwest (SXSW) conference for 2017, presenting specific content frostybet casino in special playlists through an SXSW hub in Spotify’s apps. 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.
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. 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. Today, royalties on all streaming services, including Spotify are paid on a per user basis not per stream as this allows the artists who users listen to the most to receive the largest percentage of the payouts.
The subscription costs $0.99 and is supposed to be a combination of the free and premium tiers. On September 10, 2025, it was announced that Lossless would be rolling out to Premium listeners gradually to more than 50 markets through October. Spotify introduced a Family subscription in October 2014, which allows up to 5 family members to have a premium subscription.
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 26 March 2019, Spotify announced they would acquire another podcast network, Parcast. On 6 February 2019, Spotify acquired the podcast networks Gimlet Media and Anchor FM Inc., with the goal of establishing themselves as a leading figure in podcasting. This was followed in May 2017 with the acquisition of artificial intelligence startup Niland, which uses technology to improve personalisation and recommendation features for users.