Spotify, founded in Sweden in 2006, is one of the most popular audio streaming services worldwide. With around 365 million active users (as of Q2 2021), the provider is the modern way to consume music. Favorite songs that were once played on the radio and recorded on cassettes or later played on storage media such as CDs are now always available on mobile devices.
The creator of the world’s most popular music streaming service, Daniel Eck, relied on a concept that offered two types of subscriptions from the outset. There is a free version of the music app, but the stream of music is often interrupted by ads and users have to accept the restrictions on using the app. On the other hand, the premium subscription requires a monthly fee and offers broad access to all features and offerings. Spotify tops the list of music streaming services in terms of subscribers with 150 million paying customers.
At the beginning of 2022, the Swedish music streaming service is legally operating in almost 200 countries around the world, constantly expanding the geography of its presence. According to analysts, the Swedish green giant holds 34% of the global streaming music market.
The popularity with Spotify is also largely due to the fact that users have free access to almost the entire set of features of the music platform. This opportunity is not provided by all of its competitors.
Payments and income for streaming music copyright holders remain a hot topic of discussion. This controversial issue has existed in the industry since the inception of music streaming models. In the past, artists have spoken out against Spotify’s distribution policies on multiple occasions. It is still unclear how much the musicians officially earn for one song title. Statistics show that it takes 254 Spotify song plays to earn one Euro as an artist. Among other things, due to growing pressure from the music and media industry, Spotify has launched the Loud & Clear platform on which the streaming service wants to bring more transparency to the music streaming industry. In 2020, a total of 870 artists received a distribution of at least one million US dollars.
Statistics claim that streaming services account for about 80% of all revenue for the global music industry. This trend has become especially relevant in the context of the global pandemic. Spotify claims that the platform has paid more than $ 16 billion in royalties to artists and composers since its inception. And therein lies another reason for the popularity of Spotify.