Spotify Technology S.A.
SummaryEdit
Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates through Premium and Ad-Supported segments. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices. The company also offers sales, marketing, contract research and development, and customer support services. As of December 31, 2021, its platform included 406 million monthly active users and 180 million premium subscribers in 184 countries and territories. The company was incorporated in 2006 and is based in Luxembourg, Luxembourg.
About the CompanyEdit
Spotify, a Swedish music corporation, is devoted to "unlocking the potential of human creativity." With a vast user base exceeding 550 million monthly active users spanning across 184 regions, it leads the world as the most subscribed music platform, outpacing competitors such as Apple Music, YouTube Music, and Amazon Music.
Business OperationEdit
Spotify derives its primary revenue streams from two sources: first, through its ad-free music service offered to subscribers of Spotify Premium, and second, through advertising for users who do not subscribe to the premium tier. Artists and podcast creators seek to distribute their content on the Spotify platform, and in return, Spotify compensates these content owners through royalty payments. The amount of revenue an artist or podcaster receives is directly correlated to the number of streams their content garners, with higher streaming numbers resulting in increased compensation.