Spotify is a Swedish audio streaming and media service provider founded in 2006 by Daniel Ek and Martin Lorentzon. It stands as one of the largest music streaming services globally, boasting over 675 million monthly active users, including 263 million paying subscribers as of December 2024. Spotify is publicly traded on the New York Stock Exchange.
In April 2006, Spotify was founded in Sweden by Daniel Ek and Martin Lorentzon.
In 2006, Spotify was founded in Stockholm, Sweden, by Daniel Ek and Martin Lorentzon. The name was conceived as a portmanteau of "spot" and "identify".
Since its 2006 launch, Spotify has faced criticism regarding its compensation model, with artists and creators describing it as "unsustainable."
In 2008, just after launch, the company made a loss of 31.8 million Swedish kronor (US$4.4 million).
In February 2009, Spotify opened public registration for its free service tier in the United Kingdom. This led to a surge in registrations following the release of the mobile service.
In February 2010, Spotify received a small investment from Founders Fund.
In September 2010, the World Economic Forum (WEF) selected Spotify as a Technology Pioneer for 2011.
In October 2010, Wired reported that Spotify was making more money for labels in Sweden than any other retailer "online or off".
In March 2011, Spotify announced it had a customer base of 1 million paying subscribers across Europe.
In April 2011, Spotify announced that free members would have limited access to music starting May 1, 2011. Free members would be limited to ten hours of music streaming per month, and individual tracks were limited to five plays.
On May 1, 2011, Spotify's restrictions on free memberships became effective. Free members were limited to ten hours of music streaming per month, and individual tracks were limited to five plays. New users were exempt from these changes for six months.
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.
In July 2011, Spotify launched in the United States, offering a six-month, ad-supported trial period with unlimited free music.
By September 2011, Spotify's number of paying subscribers had doubled to two million.
In November 2011, Spotify introduced a Spotify Apps service that enabled third-party developers to create applications within the Spotify computer software.
In 2011, it reported a near US$60 million net loss from revenue of $244 million.
The World Economic Forum had selected Spotify as a Technology Pioneer for 2011.
In January 2012, Spotify's free trial periods began to expire, limiting users to ten hours of streaming per month and five plays per song.
In April 2012, Spotify introduced a "Spotify Play Button", an embeddable music player that could be added to websites.
In June 2012, Soundrop became the first Spotify app to attract major funding, receiving $3 million from Spotify investor Northzone.
In August 2012, Spotify reached 15 million active users, with four million being paying subscribers.
A Goldman Sachs-led round of funding closed in November 2012, raising around $100 million at a $3 billion valuation.
In November 2012, a report suggested strong momentum for the company.
In December 2012, Spotify introduced a "Follow" tab, a "Discover" tab, along with a "Collection" section to enhance music discovery and user engagement.
In December 2012, Spotify reached 20 million total active users, including five million paying customers globally and one million paying customers in the United States.
The ability to purchase and download music tracks via the app was removed on 4 January 2013.
The music purchases service from within the app was removed in January 2013.
By March 2013, Spotify had 24 million active users, with six million being paying subscribers.
In March 2013, Spotify removed the five-play individual track limit for users in the United Kingdom.
In May 2013, Spotify acquired music discovery app Tunigo.
In December 2013, Spotify announced that free users on Android and iOS smartphones could listen to music in Shuffle mode. This feature allowed users to stream music by specific artists and playlists without choosing specific songs.
In December 2013, Spotify launched a new website, "Spotify for Artists", explaining its business model and revenue data.
In 2013, Spotify revealed that it paid artists an average of $0.007 per stream.
In January 2014, Spotify removed all time limits for free users on all platforms, including computers. Previously, there was a 10-hour monthly listening limit after a 6-month grace period.
In March 2014, Spotify acquired The Echo Nest, a music intelligence company.
In March 2014, Spotify introduced a discounted Premium subscription tier for students in the United States enrolled in a university, where they pay half-price for a Premium subscription.
In April 2014, Spotify discontinued its peer-to-peer (P2P) system for distributing music. The decision was made because Spotify was able to power music delivery through its growing number of servers.
In May 2014, Spotify reported 40 million users, including ten million paying subscribers.
In June 2014, Spotify announced a Web API allowing third-party developers to integrate Spotify content into their web applications.
In October 2014, Spotify introduced a Family subscription, which allows up to 5 family members to have a premium subscription.
In December 2014, Spotify had 60 million users, including 15 million paying subscribers.
In January 2015, Sony announced PlayStation Music, a new music service with Spotify as its exclusive partner, integrating Spotify into PlayStation consoles and Xperia mobile devices.
On March 30, 2015, the PlayStation Music service, powered by Spotify, was launched, integrating Spotify into Sony's PlayStation 3 and PlayStation 4 gaming consoles, and Sony Xperia mobile devices.
In April 2015, Spotify began another round of fundraising, seeking $400 million, which would value the company at $8.4 billion.
In May 2015, Spotify announced a new "Home" start-page, introduced "Spotify Running", and announced the addition of podcasts, videos, and "Spotify Originals" content.
In June 2015, Spotify acquired Seed Scientific, a data science consulting and analytics company.
In June 2015, Spotify raised $526 million at a value of $8.53 billion.
In June 2015, Spotify reached 75 million users, with 20 million paying subscribers.
In July 2015, Spotify launched Discover Weekly, a playlist generated weekly that provides users with music recommendations.
In October 2015, "Thinking Out Loud" by Ed Sheeran became the first song to surpass 500 million streams on Spotify.
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 December 2015, Quartz reported that songs in Discover Weekly playlists had been streamed 1.7 billion times.
In December 2015, Spotify debuted Spotify Wrapped, a program that creates playlists based on each user's most listened-to songs from the year.
In January 2016, Spotify acquired social and messaging startups Cord Project and Soundwave.
In January 2016, Spotify and Genius partnered to bring annotation information from Genius into infocards presented while songs are playing in Spotify through the "Behind the Lyrics" feature.
In January 2016, Spotify raised another $500 million through convertible bonds.
In March 2016, Spotify had reached 30 million paying subscribers.
In March 2016, Spotify launched six playlists branded as Fresh Finds, which included the main playlist and Fire Emoji, Basement, Hiptronix, Six Strings, and Cyclone focusing on various genres to spotlight lesser-known musicians.
In March 2016, Spotify raised $1 billion in financing by debt plus a discount of 20% on shares once the initial public offering (IPO) of shares takes place.
In April 2016, Daniel Ek and Martin Lorentzon wrote an open letter to Swedish politicians, requesting improvements in housing, education, and stock options to help Spotify recruit top talent.
In April 2016, Rihanna overtook Justin Bieber to become the biggest artist on Spotify, with 31.3 million monthly active listeners.
In April 2016, Spotify acquired CrowdAlbum, a startup that collects photos and videos of performances shared on social networks.
In May 2016, Drake surpassed Rihanna, becoming the biggest artist on Spotify with 31.85 million monthly listeners.
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.
In May 2016, the limit of the Family subscription was changed to 6 family members, and the price was reduced. The Family subscription provides access to Spotify Kids.
In June 2016, Spotify reached 100 million total users.
In August 2016, Spotify launched Release Radar, a personalized playlist that updates every Friday, allowing users to stay up-to-date on new music releases from artists they listen to and discover new music.
In September 2016, Spotify reported 40 million paying subscribers.
In November 2016, Spotify acquired Preact, a cloud-based platform designed to reduce churn and increase subscriber numbers for subscription-based companies.
In December 2016, Drake's song "One Dance" became the first song to hit one billion streams on Spotify.
In 2016, Spotify migrated most of its infrastructure to Google Cloud.
In 2016, Spotify provided artists taking part in RADAR with resources and access to integrated marketing opportunities.
In 2016, Spotify was criticized for allegedly making certain artists' music harder to find as a result of these artists releasing their music to the rival streaming service Apple Music before releasing it to Spotify.
In February 2017, Spotify announced the expansion of its United States operations in Lower Manhattan, New York City, adding approximately 1,000 new jobs.
In March 2017, Spotify acquired Sonalytic, an audio detection startup, for an undisclosed amount. This acquisition aimed to improve personalized playlists, song matching, and publishing data.
In March 2017, Spotify agreed with major record labels to restrict some newly released albums to its Premium tier for a period of time in exchange for a reduction in royalty fees.
In March 2017, Spotify announced a partnership with the South by Southwest (SXSW) conference for 2017, presenting content in special playlists. Additionally, in March 2017, Spotify announced a partnership with WNYC Studios, bringing podcasts like Note to Self to the platform.
In April 2017, Spotify acquired Mediachain, a blockchain startup that had been developing a decentralized database system for managing media metadata.
In April 2017, the "Behind the Lyrics" feature expanded to the Android app.
In April 2017, the Fan Insights panel was upgraded to leave beta status, renamed as "Spotify for Artists", and opened to all artists and managers.
In April 2017, the discounted Premium subscription tier was expanded to 33 more countries.
In May 2017, Spotify acquired artificial intelligence startup Niland, to enhance user personalization and recommendation features.
In May 2017, Spotify introduced Spotify Codes for its mobile apps, a method for users to share specific artists, tracks, playlists, or albums using a "soundwave-style barcode".
In June 2017, Spotify became available as an app through Windows Store.
In June 2017, Variety 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.
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.
In August 2017, upon its release, Taylor Swift's single "Look What You Made Me Do" earned over eight million streams within 24 hours, breaking the record for the most single-day streams for a track on Spotify.
In October 2017, Microsoft announced it would end its Groove Music streaming service by December, with all music from users transferring to Spotify as part of a new partnership.
In October 2017, Spotify launched "Rise", a program designed to promote emerging artists.
In November 2017, Spotify acquired Soundtrap, an online music studio startup.
According to TechCrunch, the company was planning to launch on the stock market in 2017.
As of 2017, Spotify was not yet a profitable company.
In 2017, Spotify introduced RapCaviar, a hip-hop playlist.
In 2017, the music catalogues of artists such as Taylor Swift and Thom Yorke, who had previously withdrawn their music from the service over compensation concerns, returned to Spotify.
On 31 January 2018, Spotify began 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.
In February 2018, Spotify integrated with the gaming-oriented voice chat service Discord on desktop clients, allowing users to display their currently playing song and invite others to group listening parties.
After its debut on the New York Stock Exchange on 3 April 2018, Spotify opened at $165.90, which was more than 25% above its reference price of $132.
In April 2018, Spotify began allowing free users to listen on-demand to songs for an unlimited number of times. This was limited to songs on the user's 15 personalized discovery playlists.
In April 2018, Spotify went public on the stock market using a direct public offering (DPO), with Morgan Stanley as the advisor.
On 12 April 2018, Spotify acquired the music licensing platform Loudr.
In May 2018, Spotify introduced its "Hate Content & Hateful Conduct policy", removing music from R. Kelly and XXXTentacion. This policy was revoked in June 2018 because the company deemed the original wording to be too "vague".
On 19 June 2018, XXXTentacion's single "Sad!" broke Taylor Swift's single-day streaming record, amassing 10.4 million streams the day after he was fatally shot in Florida.
In August 2018, Spotify bought the exclusive rights to The Joe Budden Podcast and expanded the show to a twice-weekly schedule.
In September 2018, Spotify announced "Upload Beta", allowing artists to upload directly to the platform instead of going through a distributor or record label. 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.
In November 2018, Spotify announced it was opening up Spotify Connect to all of the users using its Free service.
On 14 November 2018, Spotify announced its expansion to 13 new markets in the MENA region, which included the creation of a new Arabic hub and playlists.
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 January 2019, Spotify introduced Car View for Android and beta-tested its Canvas feature, allowing artists to upload looping visuals to their tracks.
In February 2019, one month after Spotify acquired Gimlet Media, 75% of Gimlet Media staff went public, signing union cards and seeking voluntary recognition.
On 6 February 2019, Spotify acquired the podcast networks Gimlet Media and Anchor FM Inc., to expand into podcasting.
In March 2019, Spotify acquired Parcast.
In May 2019, Spotify announced Car Thing, a voice-activated music-streaming gadget for cars.
In June 2019, Spotify launched a custom playlist titled "Your Daily Drive" that replicates the drive time format of traditional radio stations, combining news updates with music.
Since 4 June 2019 the standalone app Stations by Spotify was made available to all iOS and Android users in the United States.
On 1 July 2019, Spotify deprecated the "Upload Beta" program and announced plans to stop accepting direct uploads by the end of that month and eventually remove all content uploaded in this manner.
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.
On 19 November 2019, Spotify announced the acquisition of the exclusive rights to The Last Podcast on the Left.
In 2019, RapCaviar had 10.9 million followers, becoming one of Spotify's Top 5 playlists.
In February 2020, Spotify announced it was acquiring The Ringer, and inheriting the previously established union.
In February 2020, Spotify announced it would be featuring new songwriter pages and 'written by' playlists to give fans a behind-the-scenes look at their favorite songwriters.
In April 2020, Spotify achieved 133 million premium users.
Before May 2020, Spotify users were limited to 10,000 songs in their library. After May 2020, Spotify removed this limit.
In May 2020, Spotify introduced the Group Session feature, allowing Premium users to share control over the music being played.
In May 2020, Spotify teamed up with ESPN and Netflix to curate podcasts around their Michael Jordan documentary The Last Dance.
On 19 May 2020, Spotify acquired exclusive rights to stream the podcast The Joe Rogan Experience beginning in September of that year for around US$100 million.
In July 2020, Spotify added another tier, Premium Duo, aimed at couples, allowing up to 2 people (living at the same address) to share a subscription.
On 3 July 2020, a database containing 380 million individual records, including the logins and passwords of Spotify users, was discovered, indicating a potential credential stuffing cyberattack.
In September 2020, Spotify, Epic, and other companies founded The Coalition for App Fairness, advocating for better conditions for app inclusion in app stores.
In November 2020, Spotify announced its plans to acquire Megaphone from The Slate Group for US$235 million, expanding its capabilities in podcast advertising and technology.
In response to a cybersecurity breach, Spotify issued a rolling reset of passwords for affected accounts in November 2020.
In 2020, Spotify partnered with Wizarding World to release a series of recorded readings of Harry Potter and the Philosopher's Stone, by various stars of the franchise.
In 2020, Spotify's revenue for Q1 amounted to €1.85 billion ($2 billion), with €1.7 billion ($1.84 billion) coming from Spotify Premium subscribers and an operating loss of €17 million ($18 million).
In 2020, approximately 13,000 out of seven million artists (0.19%) on Spotify generated $50,000 or more in payments.
In early 2020, Spotify submitted images of the Car Thing device as part of filings to the Federal Communications Commission (FCC).
In January 2021, Spotify began testing audiobooks on the platform to expand its content offerings.
In February 2021, Spotify announced their plans to introduce a HiFi subscription, to offer listening in high fidelity, lossless sound quality.
In March 2021, David Dayen argued 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".
In March 2021, Spotify acquired Betty Labs, the developer of the live social audio app Locker Room, signaling Spotify's entry into the live audio space.
In March 2021, Spotify announced an upcoming option for higher-resolution sound, Spotify Hi-Fi.
In March 2021, the UnionOfMusicians (UMAW) organized protests in 31 cities, demanding more transparency and a compensation of one cent per stream under the #JusticeAtSpotify campaign.
On March 1, 2021, Spotify confirmed it would lose access to music from Kakao Entertainment artists, but later in March 2021, announced an agreement was reached to restore their content globally.
In April 2021, Spotify rolled out its own voice assistant with the hands-free wake word: "Hey Spotify".
In April 2021, writers and producers ratified their first collective agreement with Gimlet Media and Ringer, lasting 3 years, with minimum base salaries of $57,000 for Ringer staff and $73,000 for Gimlet producers.
In May 2021, Armchair Expert announced its podcast would become exclusive to Spotify starting July 1st, while retaining creative control.
In June 2021, Spotify rebranded Locker Room as Spotify Greenroom, aiming to compete with Clubhouse in the live audio market.
In July 2021, Spotify launched the "What's New" feed, a section that collects new releases and episodes from followed artists and podcasts.
In August 2021, Spotify launched a test subscription tier called Spotify Plus for $0.99, a combination of the free and premium tiers, with ads but without shuffle mode and unlimited track skips.
In November 2021, Spotify acquired audiobook company Findaway, including its publishing imprint OrangeSky Audio, marking Spotify's expansion into the audiobook market.
In November 2021, Spotify hid the "shuffle" button for albums following a request by singer Adele, to preserve the artist's intended listening experience.
In November 2021, Spotify launched the City and Local Pulse charts, which represent the songs listened to in major cities around the world and are available for 200 cities with the most listeners on Spotify.
As of 18 November 2021, "Behind the Lyrics" was replaced with auto-generated real-time lyrics powered by Musixmatch due to consumer demand.
In December 2021, Spotify acquired Whooshkaa, a podcast tech company, to enhance its technology for converting radio content into on-demand podcasts.
Since about 2021 Spotify was filling its playlists in some genres with stock music attributed to a handful of little-known musicians, mostly Swedish, in an effort to reduce its royalty payouts.
In January 2022, 270 scientists and healthcare workers wrote an open letter to Spotify expressing concern over misinformation on The Joe Rogan Experience podcast. Neil Young removed his music from Spotify after they refused to remove the podcast.
In February 2022, Spotify acquired Chartable and Podsights, both podcast advertising companies, to strengthen its advertising capabilities in the podcasting space.
In March 2022, Spotify reported having 182 million premium subscribers.
In May 2022, Spotify began testing a feature that allows select artists to promote their NFTs via their profiles, initially available only on the Android app in the US. Some artists included in this initial test phase were Steve Aoki and the Wombats.
On 16 May 2022, Spotify announced that the Stations by Spotify app would be shut down. Users could transfer stations into Spotify.
In June 2022, Spotify acquired Sonantic, a synthetic voice and video developer, to enhance its capabilities in voice technology and content creation.
In July 2022, Spotify acquired Heardle, a Wordle-inspired music trivia game, for an undisclosed amount, integrating it into its platform for interactive music experiences.
In July 2022, Spotify discontinued the Car Thing device.
As of August 2022, there are two Spotify subscription tiers.
In October 2022, Spotify acquired Kinzen, a Dublin-based content moderation startup, to enhance its ability to moderate content on the platform.
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 channel grew to 2,000 participants.
As of December 2022, Spotify was available in 184 markets across Europe, Africa, the Americas, Asia, and Oceania. 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.
In 2022, an investigation found that around twenty songwriters were behind the work of more than five hundred "artists," and that thousands of their tracks were on Spotify and had been streamed millions of times.
In February 2023, Spotify GmbH employees in Berlin established an electoral board to prepare for the election of a works council in April.
In March 2023, Spotify rolled out "Discovery Mode", a tool that allows artists to submit qualifying songs for Spotify's in-house promotion services.
In 2022, Spotify Greenroom rebranded as Spotify Live, and in April 2023, it was planned to be shut down, signaling a shift in Spotify's live audio strategy.
Heardle, a Wordle-inspired music trivia game acquired by Spotify, was shut down in May 2023, after less than a year after its acquisition.
In May 2023, Spotify removed tens of thousands of songs, roughly 7% of the tracks uploaded by Boomy, due to suspected "artificial streaming", or using bots to inflate listening statistics.
In August 2023, Spotify AB ended joint-negotiations with the three trade unions Unionen and Engineers of Sweden (affiliate of SACO) after the unions petitioned Spotify to negotiate back in May.
In September 2023, Spotify introduced 'Daylist', a new kind of playlist which adapts to the user's mood throughout the day.
In November 2023, Spotify announced a new royalty model taking effect in 2024, aiming to reduce fraudulent royalties. The new model has requirements for track listens and play time.
In November 2023, Spotify expanded free access to 200,000 audiobooks for Spotify Premium subscribers.
In December 2023, Spotify was the 47th most-visited website globally, with 24.78% of its traffic originating from the United States and 6.51% from Brazil.
In 2011, Spotify reported a near US$60 million net loss from revenue of $244 million (equivalent to $326,200,000 in 2023), while it was expected to generate a net loss of $40 million (equivalent to $52,490,000 in 2023) from revenue of $500 million in 2012 (equivalent to $656,100,000 in 2023).
In 2020, $50,000 was equivalent to $58,000 in 2023
In 2023, Spotify announced that it would leave Uruguay due to a copyright law, but reversed its decision a few weeks later.
In June 2012, Soundrop became the first Spotify app to attract major funding, receiving $3 million (equivalent to $3,937,000 in 2023).
In March 2024, The Writers Guild of America, East ratified a collective agreement with Ringer and Spotify Studios, increasing minimum base salaries to $65,000 and including safe-guards against usage of artificial intelligence.
In April 2024, Spotify expanded access to audiobooks from the US, UK and Australia to include Canada, Ireland and New Zealand. The company also announced an expansion of its book catalogue to 250,000 books.
In May 2024 Spotify announced that the Car Thing hardware would fully stop working on 9 December 2024.
In November 2024, Spotify for Podcasters was rebranded to Spotify for Creators, aiming to consolidate and organize its tools for content creation, management, growth, and monetization.
In December 2024, a report in Harper’s Magazine alleged that Spotify was padding playlists with ghost artists created by production companies to minimize royalty costs, a practice that started in 2017 with a program called Perfect Content Fit (PFC).
On December 9, 2024 Spotify's Car Thing hardware will fully stop working.
As of December 2024, Spotify had over 675 million monthly active users, including 263 million paying subscribers, solidifying its position as one of the largest music streaming services.
Ahead of Spotify Wrapped 2024, Spotify changed its API so that modded versions of the client would not work.
At the end of Q3 2024, Spotify reported 252 million subscribers and 640 million monthly active users.
By 2024, Spotify added 15 hours of audiobook listening to its premium tier and started a new "bundle" royalty rate to songwriters.
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).
In the 2025 book Mood Machine: The Rise of Spotify and the Costs of the Perfect Playlist, journalist Liz Pelly details that Spotify has partnerships with a web of production companies which give up control of some royalty payments so that the company can benefit financially.
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