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Spotify (/sptfa/; .mw-parser-output .IPA-label-small{font-size:85%}.mw-parser-output .references .IPA-label-small,.mw-parser-output .infobox .IPA-label-small,.mw-parser-output .navbox .IPA-label-small{font-size:100%}Swedish: [sptfaj]) is a Swedish[6] audio streaming and media services provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon.[7] It is one of the largest music streaming service providers, with over 590 million monthly active users, including 226 million paying subscribers, as of September 2023.[4][8] Spotify is listed (through a Luxembourg City-domiciled holding company, Spotify Technology S.A.[1]) on the New York Stock Exchange in the form of American depositary receipts.

Spotify offers digital copyright restricted recorded audio content, including more than 100 million songs and five million podcasts, from record labels and media companies.[8] As a freemium service, basic features are free with advertisements and limited control, while additional features, such as offline listening and commercial-free listening, are offered via paid subscriptions. Users can search for music based on artist, album, or genre, and can create, edit, and share playlists.

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Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the number of artist streams as a proportion of total songs streamed. It distributes approximately 70% of its total revenue to rights holders (often record labels), who then pay artists based on individual agreements.[14] While certain musicians have voiced objections to Spotify's royalty structure and its effect on record sales, others laud the service for offering a lawful option to combat piracy and for remunerating artists each time their music is played.[15]

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. Select albums would be available only on the Premium tier for a period of time, before general release. The deal "may be months away from being finalized, but Spotify is said to have cleared this particular clause with major record labels".[49][50][51] New reports in April confirmed that Spotify and Universal Music Group had reached an agreement to allow artists part of Universal to limit their new album releases to the Premium service tier for a maximum of two weeks. Spotify CEO Daniel Ek commented that "We know that not every album by every artist should be released the same way, and we've worked hard with UMG to develop a new, flexible release policy. Starting today, Universal artists can choose to release new albums on premium only for two weeks, offering subscribers an earlier chance to explore the complete creative work, while the singles are available across Spotify for all our listeners to enjoy".[52][53][54] It was announced later in April that this type of agreement would be extended to indie artists signed to the Merlin Network agency.[55][56]

In May 2013, Spotify acquired music discovery app Tunigo.[65] In March 2014, they acquired The Echo Nest, a music intelligence company.[66][67] In June 2015, Spotify announced they had acquired Seed Scientific, a data science consulting firm and analytics company. In a comment to TechCrunch, Spotify said that Seed Scientific's team would lead an advanced analytics unit within the company, focused on developing data services.[68][69] In January 2016, they acquired social and messaging startups Cord Project and Soundwave,[70] followed in April 2016 by CrowdAlbum, a "startup that collects photos and videos of performances shared on social networks," and would "enhance the development of products that help artists understand, activate, and monetize their audiences".[71] In November 2016, Spotify acquired Preact, a "cloud-based platform and service developed for companies that operate on subscription models which helps reduce churn and build up their subscriber numbers".[72]

In March 2017, Spotify acquired Sonalytic, an audio detection startup, for an undisclosed amount of money. Spotify stated that Sonalytic would be used to improve the company's personalized playlists, better match songs with compositions, and improve the company's publishing data system.[73] Later that month, Spotify also acquired MightyTV, an app connected to television streaming services, including Netflix and HBO Go, that recommends content to users. Spotify intended to use MightyTV to improve its advertising efforts on the free tier of service.[74] In April 2017, they acquired Mediachain, a blockchain startup that had been developing a decentralized database system for managing attribution, and other metadata for media.[75][76] This was followed in May 2017 with the acquisition of artificial intelligence startup Niland, which uses technology to improve personalisation and recommendation features for users.[77][78] In November 2017, Spotify acquired Soundtrap, an online music studio startup.[79][80]

On 12 April 2018, Spotify acquired the music licensing platform Loudr.[81] In August 2018, Spotify bought the exclusive rights to The Joe Budden Podcast and expanded the show to a twice-weekly schedule.[82] On 6 February 2019, Spotify acquired the podcast networks Gimlet Media and Anchor FM Inc., with the goal of establishing themselves as a leading figure in podcasting.[83][84][85] On 26 March 2019, Spotify announced they would acquire another podcast network, Parcast.[86][87] On 12 September 2019, Spotify acquired SoundBetter, a music production marketplace for people in the music industry to collaborate on projects, and distribute music tracks for licensing.[88] On 19 November 2019, Spotify announced the acquisition of the exclusive rights to The Last Podcast on the Left.[89]

In February 2022, Spotify acquired Chartable and Podsights. Both are podcast advertising companies.[103] In 2022, Spotify Greenroom rebranded as Spotify Live,[104] which was subsequently planned to be shut down in April 2023.[105] In June 2022, Spotify acquired Sonantic, a synthetic voice and video developer.[106] In July 2022, Spotify acquired Heardle, a Wordle-inspired music trivia game, for an undisclosed amount;[107][108] Heardle was shut down in May 2023.[109] In October 2022, Spotify acquired the Dublin-based content moderation startup, Kinzen.[110] In 2023, Spotify merged Anchor into their Spotify for Podcasters tool, a rebranding move and to organize its tools for creating, managing, growing, and monetizing their content in one place.[111]

In January 2015, Sony announced PlayStation Music, a new music service with Spotify as its exclusive partner. PlayStation Music incorporates the Spotify service into Sony's PlayStation 3 and PlayStation 4 gaming consoles, and Sony Xperia mobile devices. The service launched on 30 March 2015.[112] 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. The integration also enabled Spotify within the SXSW GO app to help users discover and explore artists performing at the conference. Two more partnerships were announced in March; one with WNYC Studios, and one with Waze. The WNYC Studios partnership brought various podcasts from WNYC to Spotify, including Note To Self, On the Media and Here's the Thing. Spotify also announced that the third season of WNYC Studios' 2 Dope Queens podcast would premiere with a two-week exclusivity period on the service on 21 March 2017.[113] The Waze partnership allows Waze app users to view directions to destinations within the Spotify app and access their Spotify playlists through the Waze app.[114]

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.[115] In December, Spotify and Tencent's music arm, Tencent Music Entertainment (TME), agreed to swap stakes and make an investment in each other's music businesses.[116][117] As a result of this transaction, Spotify gained a 9% stake in TME with TME gaining a 7.5% stake in Spotify.[118]

Sewell responded to the letter: "We find it troubling that you are asking for exemptions to the rules we apply to all developers and are publicly resorting to rumors and half-truths about our service." He also elaborated that "Our guidelines apply equally to all app developers, whether they are game developers, e-book sellers, video-streaming services or digital music distributors; and regardless of whether they compete against Apple. We did not alter our behavior or our rules when we introduced our own music streaming service or when Spotify became a competitor". Furthermore, he stated that "There is nothing in Apple's conduct that 'amounts to a violation of applicable antitrust laws.' Far from it. ... I would be happy to facilitate an expeditious review and approval of your app as soon as you provide us with something that is compliant with the App Store's rules".[130][131]

Spotify released the first version of its Apple Watch app in November 2018, allowing playback control of the iPhone via the watch. Users can also choose which devices to play music on via Bluetooth.[136] In a further escalation of the dispute with Apple, on 13 March 2019, Spotify filed an antitrust complaint with the European Commission over unfair app store practices. Two days later, Apple responded, stating that the claim was misleading rhetoric and that Spotify wanted benefits of a free app without being a free app. Spotify responded with a statement calling Apple a monopolist and stated that they had only filed the complaint as Apple's actions hurt competition and consumers and clearly violated the law. It also said that Apple believed Spotify users on the app store were Apple's customers and not Spotify's.[137] ff782bc1db