Spotify Technology S.A. (/ˈspɒtɪfaɪ/) is an international media services provider.

It is legally domiciled in
Luxembourg and is headquartered in Stockholm, Sweden.[6]

Founded in 2006, the company's primary business is providing an audio streaming platform, the
"Spotify" platform, that provides DRM-restricted music, videos and podcasts from record labels and
media companies. As a freemium service, basic features are free with advertisements or automatic
music videos, while additional features, such as offline listening and commercial-free listening, are
offered via paid subscriptions.

Launched on October 2008, the Spotify platform provides access to over 50 million tracks.[7] Users can
browse by parameters such as artist, album, or genre, and can create, edit, and share playlists. Spotify is
available in most of Europe and the Americas, Australia, New Zealand, and parts of Africa and Asia, and
on most modern devices, including Windows, macOS, and Linux computers, and iOS, and Android
smartphones and tablets.[8][9] As of April 2020, the company had 286 million monthly active users,
including 130 million paying subscribers.[10]

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[11] to rights holders, who then pay artists based on their
individual agreements. Spotify has faced criticism from artists and producers including Taylor Swift and
Thom Yorke, who have argued that it does not fairly compensate musicians. In 2017, as part of its efforts
to renegotiate license 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 or the Merlin Network.

Spotify's international headquarters are in Stockholm, Sweden, though each region has its own
headquarters. Since February 2018, it has been listed on the New York Stock Exchange and in September
2018, the company relocated its New York City offices to 4 World Trade Center.[12]

History

Daniel Ek addressing Spotify staff in 2010

Spotify was developed in 2006[13] by a team in Stockholm, Sweden. The company was founded by
Daniel Ek, former CTO of Stardoll, and Martin Lorentzon, co-founder of TradeDoubler. The company's
title, according to Daniel Ek, was initially misheard from a name shouted by Martin Lorentzon. Later they
thought out an etymology of a combination of "spot" and "identify".[14] Spotify operates internationally
under a multitude of companies in different regions. Spotify currently has 44 offices that operate
internationally.[15]

Launch in 2008

Spotify's original logo (2008–2012)

The Spotify application was launched 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. At
the same time, Spotify AB announced licensing deals with major music labels.[16]

Early international launches

Former Spotify headquarters in Stockholm

In February 2009, Spotify opened public registration for the free service tier in the United Kingdom.[17]
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.[18] Premium cards were
offered for the 2009 Christmas season that allowed recipients to upgrade an account to "Premium"
status for 1, 3, 6, or 12 months.[19]

For the service's launch in the United States in July 2011, Spotify had a six-month free ad-supported trial
period, where new users could listen to an unlimited amount of music. In January 2012, the free trial
started expiring, with users limited to ten hours each month and five-song replays.[20] In March, Spotify
removed all limits on the free service tier indefinitely.