Spotify (NYSE: SPOT) is a Swedish music streaming service founded in 2006 by Daniel Ek and Martin Lorentzon. The company revolutionized the music industry by offering users access to millions of songs through a subscription-based streaming model. Spotify launched publicly in 2008 and went public on the New York Stock Exchange in 2018. Headquartered in Stockholm, Sweden, Spotify has offices in over a dozen locations worldwide.
Spotify offers both free ad-supported and paid premium subscription tiers. Its key products and services include on-demand music streaming, personalized playlists, podcasts, and audiobooks. The platform uses algorithms to provide music recommendations and create custom playlists for users. Spotify has expanded beyond music in recent years, investing heavily in podcasts and audiobooks to diversify its content offerings. The company allows users to stream content across various devices including smartphones, computers, smart speakers, and car audio systems.
As of Q1 2024, Spotify reported 615 million monthly active users and 239 million premium subscribers across over 180 markets globally. The company generated EUR 13.25 billion in revenue in 2023, with 87% coming from premium subscriptions. Spotify dominates the music streaming market with a 31.7% global market share. The company has paid out over USD 40 billion in royalties to rights holders since its launch. Spotify continues to focus on user growth and improving its advertising technology to boost revenue from its free tier. The company aims to reach 1 billion users by 2030 as it expands into new markets and content verticals.
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