Spotify is a Swedish-born audio streaming company that operates globally through Luxembourg-domiciled holding company Spotify Technology S.A. Best known for its freemium music service, it has expanded into podcasts, audiobooks, and creator tools, and is listed on the New York Stock Exchange under the ticker SPOT via a 2018 direct listing. As of the third quarter of 2025, the platform reported 713 million monthly active users and 281 million paying subscribers.
Last updated November 17, 2025
Spotify is a global audio-streaming and media platform founded in 2006 in Stockholm by Daniel Ek and Martin Lorentzon, and operated through Spotify Technology S.A., a public limited company registered in Luxembourg. According to investor filings, the company’s registered office is at 33 Boulevard Prince Henri, L‑1724 Luxembourg, and its shares trade on the NYSE as SPOT via an April 3, 2018 direct listing. SEC (Form 6‑K/20‑F); CNBC. As of Q3 2025, Spotify reported 713 million monthly active users (MAUs) and 281 million Premium subscribers, with quarterly revenue of €4.3 billion and operating income of €582 million. Spotify Newsroom; Wall Street Journal. (sec.gov)
History and corporate evolution
Spotify AB was founded on 23 April 2006, and the consumer service launched on 7 October 2008 in select European countries. Early academic and technical accounts describe its initial hybrid client‑server and peer‑to‑peer architecture, which enabled low‑latency playback at scale before the company centralized delivery. KTH/IEEE conference paper; TechCrunch. In 2016, Spotify began migrating core infrastructure and data pipelines to Google Cloud Platform to speed feature deployment and analytics. Google Cloud Blog; Wired. The company completed a direct listing on the New York Stock Exchange on April 3, 2018 rather than a traditional IPO. CNBC. (researchgate.net)
Business model and product lines
Spotify operates a freemium model: an ad‑supported free tier with usage limitations and Premium subscriptions offering ad‑free listening, downloads, and enhanced features. In 2024 it raised U.S. Premium prices (Individual to $11.99; Duo to $16.99; Family to $19.99), part of a broader profitability push. Reuters; MacRumors. Audiobooks were added as an included benefit for many Premium plans beginning in late 2023 (15 hours per month in supported markets), and in 2025 the company introduced Audiobooks+ add‑ons and a U.S. Audiobooks Access plan. Spotify Newsroom; Spotify Support; Spotify Support; Spotify Newsroom. In September–October 2025, Spotify launched “Lossless” streaming for Premium subscribers (up to 24‑bit/44.1 kHz FLAC) at no extra cost, rolling out to 50+ markets. Spotify Newsroom; MacRumors. Spotify has also deployed AI‑powered personalization features including AI DJ and AI Playlist (expanded to the U.S. and other markets in 2024). Reuters. (reuters.com)
Scale and market position
In 2024 Spotify achieved its first full year of profitability, reporting €1.4 billion in operating income and €1.14 billion in net income on €15.6 billion in revenue; MAUs reached 675 million and Premium subscribers 263 million in Q4 2024. Spotify Shareholder Deck (Q4 2024); The Verge. Industry data indicate subscription streaming remains the dominant revenue driver for recorded music, with 752 million paid accounts globally in 2024; analysts estimate Spotify led subscriber share in 2024. IFPI; Music Ally (MIDiA summary). (marketscreener.com)
Podcasts, acquisitions, and creator programs
From 2019 onward Spotify expanded beyond music through acquisitions and original/exclusive shows. It acquired Gimlet Media and Anchor (2019) and Parcast (2019), later buying Megaphone (2020) for $235 million and sports and culture outlet The Ringer (2020) for up to about $196 million. The Guardian; VentureBeat/MBW pricing; Pitchfork; Axios. In 2025 Spotify said its video‑podcast catalog neared 500,000 shows and that nearly 400 million users had watched a video podcast, while it expanded a Partner Program that pays creators via Premium video engagement and ads. TechCrunch; Spotify Newsroom. Spotify renewed its arrangement with Joe Rogan in 2024 on a non‑exclusive basis reportedly worth up to $250 million. AP News. (theguardian.com)
Licensing, royalties, and payouts
Spotify states that roughly two‑thirds of music revenue is paid to rightsholders and that royalties are calculated by “streamshare” (a pro‑rata share of total streams in a market). Spotify for Artists Royalties Guide. In 2024 the company announced policy changes intended to curb fraud and low‑value “functional audio,” including a 1,000‑annual‑streams threshold for a track to generate recording royalties. Loud & Clear (FAQ); Pitchfork. (artists.spotify.com)
Regulatory and competitive context
Spotify competes with Apple Music, Amazon Music, and YouTube Music, among others, and has been a prominent complainant in EU antitrust matters. On March 4, 2024, the European Commission fined Apple €1.8–1.95 billion over App Store anti‑steering rules in a case sparked by Spotify’s 2019 complaint; Spotify publicly welcomed the decision and pressed for enforcement. CNBC; Spotify Newsroom. Separately, in 2025 the Commission issued the first fines under the Digital Markets Act against Apple and Meta, underscoring the regulatory environment shaping mobile distribution. Le Monde (English edition). (cnbc.com)
Workforce and leadership
Spotify undertook several restructuring moves to improve margins, including layoffs of about 6% of employees in January 2023, ~2% in June 2023, and 17% (roughly 1,500 roles) in December 2023. CNBC; CNBC; CNBC. In 2024 Christian Luiga (formerly Saab CFO/Deputy CEO) was appointed Chief Financial Officer, with Ben Kung serving as interim until Luiga’s Q3 2024 start. Business Wire; Reuters. (cnbc.com)
Partnerships and marketing
Since 2022, Spotify has been the principal shirt sponsor of FC Barcelona and holds naming rights to Spotify Camp Nou; in October 2025 the partnership was extended through 2030, with stadium naming rights continuing through 2034. Spotify Newsroom; Reuters. Spotify Wrapped, launched in 2016 and now localized across 180+ markets, has become a high‑profile annual marketing program driving engagement and social sharing. Spotify Newsroom. (newsroom.spotify.com)
Spotify is a Swedish-born audio streaming company that operates globally through Luxembourg-domiciled holding company Spotify Technology S.A. Best known for its freemium music service, it has expanded into podcasts, audiobooks, and creator tools, and is listed on the New York Stock Exchange under the ticker SPOT via a 2018 direct listing. As of the third quarter of 2025, the platform reported 713 million monthly active users and 281 million paying subscribers.
Last updated November 17, 2025
Spotify is a global audio-streaming and media platform founded in 2006 in Stockholm by Daniel Ek and Martin Lorentzon, and operated through Spotify Technology S.A., a public limited company registered in Luxembourg. According to investor filings, the company’s registered office is at 33 Boulevard Prince Henri, L‑1724 Luxembourg, and its shares trade on the NYSE as SPOT via an April 3, 2018 direct listing. SEC (Form 6‑K/20‑F); CNBC. As of Q3 2025, Spotify reported 713 million monthly active users (MAUs) and 281 million Premium subscribers, with quarterly revenue of €4.3 billion and operating income of €582 million. Spotify Newsroom; Wall Street Journal. (sec.gov)
History and corporate evolution
Spotify AB was founded on 23 April 2006, and the consumer service launched on 7 October 2008 in select European countries. Early academic and technical accounts describe its initial hybrid client‑server and peer‑to‑peer architecture, which enabled low‑latency playback at scale before the company centralized delivery. KTH/IEEE conference paper; TechCrunch. In 2016, Spotify began migrating core infrastructure and data pipelines to Google Cloud Platform to speed feature deployment and analytics. Google Cloud Blog; Wired. The company completed a direct listing on the New York Stock Exchange on April 3, 2018 rather than a traditional IPO. CNBC. (researchgate.net)
Business model and product lines
Spotify operates a freemium model: an ad‑supported free tier with usage limitations and Premium subscriptions offering ad‑free listening, downloads, and enhanced features. In 2024 it raised U.S. Premium prices (Individual to $11.99; Duo to $16.99; Family to $19.99), part of a broader profitability push. Reuters; MacRumors. Audiobooks were added as an included benefit for many Premium plans beginning in late 2023 (15 hours per month in supported markets), and in 2025 the company introduced Audiobooks+ add‑ons and a U.S. Audiobooks Access plan. Spotify Newsroom; Spotify Support; Spotify Support; Spotify Newsroom. In September–October 2025, Spotify launched “Lossless” streaming for Premium subscribers (up to 24‑bit/44.1 kHz FLAC) at no extra cost, rolling out to 50+ markets. Spotify Newsroom; MacRumors. Spotify has also deployed AI‑powered personalization features including AI DJ and AI Playlist (expanded to the U.S. and other markets in 2024). Reuters. (reuters.com)
Scale and market position
In 2024 Spotify achieved its first full year of profitability, reporting €1.4 billion in operating income and €1.14 billion in net income on €15.6 billion in revenue; MAUs reached 675 million and Premium subscribers 263 million in Q4 2024. Spotify Shareholder Deck (Q4 2024); The Verge. Industry data indicate subscription streaming remains the dominant revenue driver for recorded music, with 752 million paid accounts globally in 2024; analysts estimate Spotify led subscriber share in 2024. IFPI; Music Ally (MIDiA summary). (marketscreener.com)
Podcasts, acquisitions, and creator programs
From 2019 onward Spotify expanded beyond music through acquisitions and original/exclusive shows. It acquired Gimlet Media and Anchor (2019) and Parcast (2019), later buying Megaphone (2020) for $235 million and sports and culture outlet The Ringer (2020) for up to about $196 million. The Guardian; VentureBeat/MBW pricing; Pitchfork; Axios. In 2025 Spotify said its video‑podcast catalog neared 500,000 shows and that nearly 400 million users had watched a video podcast, while it expanded a Partner Program that pays creators via Premium video engagement and ads. TechCrunch; Spotify Newsroom. Spotify renewed its arrangement with Joe Rogan in 2024 on a non‑exclusive basis reportedly worth up to $250 million. AP News. (theguardian.com)
Licensing, royalties, and payouts
Spotify states that roughly two‑thirds of music revenue is paid to rightsholders and that royalties are calculated by “streamshare” (a pro‑rata share of total streams in a market). Spotify for Artists Royalties Guide. In 2024 the company announced policy changes intended to curb fraud and low‑value “functional audio,” including a 1,000‑annual‑streams threshold for a track to generate recording royalties. Loud & Clear (FAQ); Pitchfork. (artists.spotify.com)
Regulatory and competitive context
Spotify competes with Apple Music, Amazon Music, and YouTube Music, among others, and has been a prominent complainant in EU antitrust matters. On March 4, 2024, the European Commission fined Apple €1.8–1.95 billion over App Store anti‑steering rules in a case sparked by Spotify’s 2019 complaint; Spotify publicly welcomed the decision and pressed for enforcement. CNBC; Spotify Newsroom. Separately, in 2025 the Commission issued the first fines under the Digital Markets Act against Apple and Meta, underscoring the regulatory environment shaping mobile distribution. Le Monde (English edition). (cnbc.com)
Workforce and leadership
Spotify undertook several restructuring moves to improve margins, including layoffs of about 6% of employees in January 2023, ~2% in June 2023, and 17% (roughly 1,500 roles) in December 2023. CNBC; CNBC; CNBC. In 2024 Christian Luiga (formerly Saab CFO/Deputy CEO) was appointed Chief Financial Officer, with Ben Kung serving as interim until Luiga’s Q3 2024 start. Business Wire; Reuters. (cnbc.com)
Partnerships and marketing
Since 2022, Spotify has been the principal shirt sponsor of FC Barcelona and holds naming rights to Spotify Camp Nou; in October 2025 the partnership was extended through 2030, with stadium naming rights continuing through 2034. Spotify Newsroom; Reuters. Spotify Wrapped, launched in 2016 and now localized across 180+ markets, has become a high‑profile annual marketing program driving engagement and social sharing. Spotify Newsroom. (newsroom.spotify.com)
