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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.
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.[12]
In February 2010, Spotify opened public registration for the free service tier in the United Kingdom.[14] 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.[17]
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.[70] 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.[71] 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.[72][73] 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.[74][75] In November 2017, Spotify acquired Soundtrap, an online music studio startup.[76][77]
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.[127] 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.[128]
Spotify operates under a freemium business model (basic services are free, while additional features are offered via paid subscriptions). Spotify generates revenue by selling premium streaming subscriptions to users and advertising placements to third parties. Some of the premium options users may choose from include individual, duo, family, and student.[135]
In August 2021, Spotify launched a test subscription tier called Spotify Plus. The subscription costs $0.99 and is supposed to be a combination of the free and premium tiers. Subscribers to this plan will still receive ads but will get the ability to listen to songs without shuffle mode and skip any number of tracks. The company reported that the tier conditions may change before its full launch.[154] This might have been discontinued (at least in some regions) according to an email sent to a redditor.[155]
In March 2009, Spotify began offering music downloads in the United Kingdom, France, and Spain. Users could purchase tracks from Spotify, which partnered with 7digital to incorporate the feature. The ability to purchase and download music tracks via the app was removed on 4 January 2013.[159]
In September 2018, Spotify announced "Upload Beta", allowing artists to upload directly to the platform instead of going through a distributor or record label.[179] The feature was rolled out to a small number of US-based artists by invitation only. Uploading was free and artists received 100% of the revenue from songs they uploaded; artists were able to control when their release went public. On 1 July 2019, Spotify deprecated the program and announced plans to stop accepting direct uploads by the end of that month and eventually remove all content uploaded in this manner.[180]
Spotify has client software currently available for Windows, macOS, Wear OS, Android, iOS, watchOS, iPadOS, PlayStation 4, PlayStation 5, Xbox One and Xbox Series X/S game consoles. There is an official, although unsupported Linux version. Spotify also offers a proprietary protocol known as "Spotify Connect", which lets users listen to music through a wide range of entertainment systems, including speakers, receivers, TVs, cars, and smartwatches. Spotify also has a web player (open.spotify.com).[198] Offline Music listening is possible on watchOS[199] and more recently added to google's WearOS[200] for those with premium subscriptions. Unlike the apps, the web player does not have the ability to download music for offline listening. In June 2017, Spotify became available as an app through Windows Store.[201][202]
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. The post stated that all free members would be limited to ten hours of music streaming per month, and in addition, individual tracks were limited to five plays. New users were exempt from these changes for six months.[249] 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.[250][251]
In December 2013, CEO Daniel Ek announced that Android and iOS smartphone users with the free service tier could listen to music in Shuffle mode, a feature in which users can stream music by specific artists and playlists without being able to pick which songs to hear. Mobile listening previously was not allowed in Spotify Free accounts. Ek stated that "We're giving people the best free music experience in the history of the smartphone."[252][253] This shuffle feature is not available on Android and iOS tablets, or computers.
Spotify first announced a voice-activated music-streaming gadget for cars in May 2019. Named the Car Thing, it represents the music-streaming service's first entry into hardware devices.[260] In early 2020, as part of filings to the Federal Communications Commission (FCC), submitted images of the device that make it seem much more like a miniature infotainment screen.[261] In April 2021, Spotify rolled out its own voice assistant with the hands-free wake word: "Hey Spotify".[262] Using this, users can perform various actions such as pulling playlists, launching radio stations, playing or pausing songs. This voice-based virtual assistant may be intended more towards Spotify's own hardware such as its "Car Thing".[263]
[264] The company is incorporated in Luxembourg as Spotify Technology S.A.,[265] and is headquartered in Stockholm, Sweden, with offices in 16 countries around the world.[266][267] Following the 2022 Russian invasion of Ukraine, Spotify temporarily closed its office in Russia[268] and suspended both premium and free services from the country until further notice.[269] However, the support service continues to work for Russian users.[citation needed]
Spotify has attracted significant criticism since its 2006 launch.[299] The primary point of criticism centres around what artists, music creators, and the media have described as "unsustainable" compensation.[300] Unlike physical sales or legal downloads (both of which were the main medium of listening to music at the time), which pay artists a fixed amount per song or album sold, Spotify pays royalties based on their "market share": the number of streams for their songs as a proportion of total songs streamed on the service. Spotify distributes approximately 70% of its total revenue to rights-holders, who will then pay artists based on their individual agreements.[136] Worldwide, 30,000 musicians have joined the organization UnionOfMusicians (UMAW).[301] UMAW organized protests in 31 cities in March 2021 and its campaign #JusticeAtSpotify is demanding more transparency and a compensation of one cent per stream.[301] 2ff7e9595c
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