The heart of the internet

Of that amount, about 58.5% of its total revenue goes to the owners of sound recording copyrights, and the other 12% goes to the owners of musical compositions. In December 2013, the company launched a new website, “Spotify for Artists”, explaining its business model and revenue data. There was no provision regarding worker ownership of content created, one of the initial demands. In February 2020, Spotify announced it was acquiring The Ringer, and inheriting the previously established union. One month after Spotify acquired Gimlet Media in February 2019, 75% of staff at Gimlet Media went public, signing union cards and seeking voluntary recognition. Moreover, they are asking for a fairer redistribution system, as smaller artists are disproportionately disadvantaged on Spotify.

Social Media

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.

Spotify for Creators

  • Spotify also has a ‘blend’ feature in which two users’ music preferences are mixed in a shared playlist.
  • Spotify released the first version of its Apple Watch app in November 2018, allowing playback control of the iPhone via the watch.
  • In April 2012, Spotify introduced a “Spotify Play Button”, an embeddable music player that can be added to blogs, websites, or social media profiles, that lets visitors listen to a specific song, playlist, or album without leaving the page.
  • 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 March 2009, Spotify began offering music downloads in the United Kingdom, France, and Spain.
  • The Group Session feature was later expanded to allow any Premium user to join/participate in a Group Session, with a special link the host can send to participants.

In October 2017, 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. Spotify offers DRM-protected audio content, including over 100 million songs and over 7 million podcast titles, from record labels and media companies. In 2016, Spotify was criticized for allegedly making certain artists’ music harder to find than others, as these artists would release their music to the rival streaming service Apple Music before releasing it to Spotify. Spotify has been criticised by artists and producers including Taylor Swift and Thom Yorke, who have argued that Spotify does not fairly compensate musicians, and both withdrew their music from the service. However, there has been some concern about the music streaming platform’s social media features. Before May 2020, all service users were limited to 10,000 songs in their library, after which they would receive an “Epic collection, friend” notification and would not be able to save more music to their library.
In response to the allegations about unfair compensation, Spotify claims that it is benefitting the industry by migrating users away from unauthorized copying and less monetized platforms to its free service tier, and then downgrades that service until they upgrade to paid accounts. Spotify distributes approximately 70% of its total revenue to rights-holders, who will then pay artists based on their individual agreements. 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. Among them is an increased lack of non-online social spaces, an increased lack of privacy from strangers, and a source of unbridled expression particularly with its media-related podcasts. Spotify users can also ‘jam’ sessions where users can create and contribute live music playing sessions with their Spotify friends. In April 2014, Spotify moved away from the peer-to-peer (P2P) system they had used to distribute music to users.

Trending Music Player

The standalone app was made available to all iOS and Android users in the United States since 4 June 2019. On 31 January 2018, Spotify started testing a new Pandora-styled standalone app called Stations by Spotify for Australian Android users. The company also announced an expansion of its book catalogue to 250,000 books. In January 2021, Spotify made a selection of audiobooks available on the platform as a test of developing a greater breadth of content for users. Spotify thereafter announced it was planning to add more of these pages and playlists to highlight songwriters.
In November 2021, Spotify launched the City and Local Pulse charts, aimed at representing the songs listened to in major cities around the world. frostybet casino The Group Session feature was later expanded to allow any Premium user to join/participate in a Group Session, with a special link the host can send to participants. Rap Caviar had 10.9 million followers by 2019, becoming one of Spotify’s Top 5 playlists. Spotify provides artists taking part in RADAR with resources and access to integrated marketing opportunities to help them boost their careers, in addition to expanded reach and exposure to 178 markets worldwide. In March 2021, Spotify announced an upcoming option for higher-resolution sound, Spotify Hi-Fi. Users find the relevant content to share and press a “soundwave-style barcode” on the display.
Spotify’s terms and conditions do not permit users to reverse-engineer the application. Ek stated that “We’re giving people the best free music experience in the history of the smartphone.” This limitation does not apply to Android and iOS tablets, or computers. In March 2013, the five-play individual track limit was removed for users in the United Kingdom, and media reports stated that users in the United States, Australia, and New Zealand never had the limit in the first place. In April 2011, Spotify announced via a blog post that they would drastically cut the amount of music that free members could access, effective 1 May 2011. In April 2025, Spotify expanded its AI Playlist beta feature to Premium listeners in over 40 new English-speaking markets, including countries in Africa, Asia, Europe, and the Caribbean. Instead, a 30% commission is applied to recording royalties generated from all streams of selected songs in Discovery Mode contexts—Spotify Radio and Autoplay.
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.

More by Spotify

  • In response to the allegations about unfair compensation, Spotify claims that it is benefitting the industry by migrating users away from unauthorized copying and less monetized platforms to its free service tier, and then downgrades that service until they upgrade to paid accounts.
  • The aim was to help users to listen to the music they want without information overload or spending time building their own playlists.
  • On September 10, 2025, it was announced that Lossless would be rolling out to Premium listeners gradually to more than 50 markets through October.
  • On 19 November 2019, Spotify announced the acquisition of the exclusive rights to The Last Podcast on the Left.
  • Offline Music listening is possible on watchOS and more recently added to Google’s WearOS for those with premium subscriptions.
  • Some artists included in this initial test phase were Steve Aoki and the Wombats.

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”.
In June 2022, Spotify acquired Sonantic, a synthetic voice and video developer. Also the same month, Spotify bought the exclusive rights to the Call Her Daddy podcast. In November 2020, Spotify announced plans to acquire Megaphone from The Slate Group for US$235 million.

Streaming records

This approach is not intended to raise fresh capital, but to let investors get their returns. The Financial Times reported in March 2017 that, as part of its efforts to renegotiate new licensing deals with music labels, Spotify and major record labels had agreed that Spotify would restrict some newly released albums to its Premium tier, with Spotify receiving a reduction in royalty fees to do so. In countries affected by the COVID-19 pandemic, Spotify registered a fall in users in late February, but it has seen a recovery. On 19 June 2018, XXXTentacion’s hit single “Sad!” broke Swift’s single-day streaming record, amassing 10.4 million streams the day after he was fatally shot in Florida. A month later, Spotify announced that “Lean On” by Major Lazer and DJ Snake featuring MØ was its most-streamed song of all time with over 525 million streams worldwide. 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.
The feature is powered by lyrics providers Musixmatch and PetitLyrics ja (only in Japan). The following November, the company began rolling out a web player, with a similar design to its computer programs, but without the requirement of any installation. In June 2012, Soundrop became the first Spotify app to attract major funding, receiving $3 million (equivalent to $4,039,000 in 2024) from Spotify investor Northzone.
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 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.

SoundCloud: The Songs You Love

It combines short-form podcast news updates from The Wall Street Journal, NPR, and PRI with a mix of a user’s favorite songs and artists interspersed with tracks the listener has yet to discover. Also in January 2019, Spotify beta-tested its Canvas feature, where artists or labels can upload looping 3 to 8-second moving visuals to their tracks, replacing album covers in the “Now Playing” view; users have the option to turn off this feature. The features were announced by CEO Daniel Ek at a press conference, with Ek saying that a common user complaint about the service was that “Spotify is great when you know what music you want to listen to, but not when you don’t”. “Follow” lets users follow artists and friends to see what they are listening to, while “Discover” directs users to new releases as well as music, review, and concert recommendations based on listening history. Users can create, edit and share playlists, share tracks on social media, and make playlists with other users.