Spotify

from Wikipedia, the free encyclopedia
Spotify Technology SA

logo
legal form Société Anonyme
ISIN LU1778762911
founding 2006
Seat LuxembourgLuxembourg Luxembourg
management Daniel Ek
Number of employees 4,405 (2019)
sales 6.764 billion euros (2019)
Branch Streaming media
Website www.spotify.com
As of December 31, 2019

Spotify (from English to spot “discover” and to identify “identify”) is an audio streaming service that has been developed since October 2006 by the originally Swedish start-up company Spotify Technology SA. In addition to music , audio books , podcasts and videos can also be streamed . The online service is now available in more than 90 different countries, including large parts of Europe and America . On July 15, 2020, Spotify announced expansion into 13 markets, including Russia, Serbia and Ukraine.

Using Spotify, over 60 million DRM-protected music tracks from a number of large music labels such as Sony , Warner Music Group and Universal as well as numerous small labels and more than 1.5 million podcasts can be listened to with an Internet connection and / or stored in your own library. The service is available on most modern devices, including PCs , smartphones and tablets . With the help of the provided apps, users can search through the entire available music catalog and create playlists and share them with other users.

Spotify uses a freemium model. Simple and basic services are free of charge and financed by advertising ; extended or additional functions are part of a "premium" offer. With 299 million active users, of which 138 million are paying subscribers, Spotify 2020 is the world's largest audio streaming subscription service.

Since March 13, 2012, Spotify has also been available in Germany.

Business model

All pieces of music offered are made available by and licensed by music labels. The license fees are financed in two ways: Either customers pay for their account with a subscription, or they have to accept advertisements.

With a premium account, in addition to the freedom to advertise, there is the option of playing music playlists in "offline mode", ie without an Internet connection. In addition, the music can be received with a premium account with a maximum bit rate of 320 kbit / s instead of just a maximum bit rate of 160 kbit / s. Free users can use Spotify abroad for 14 days before they have to register again in their home country. There is no such limit for users with a premium subscription. Using geolocation of the IP address of the user's computer is which country accessed the service is checked.

Spotify Premium Family has been around since 2017. With this subscription, up to six family members can use the premium benefits at a reduced price. For this subscription it is necessary that all users have the same address. A beta version of the Spotify Kids app has been available to Spotify Premium Family subscribers since May 12, 2020. At the start, the app currently offers a collection of more than 170 playlists and around 30,000 songs.

In July 2020, Spotify launched Premium Duo, an offer for two people who live in one household.

history

Old Spotify logo until the end of March 2013
Spotify headquarters in Stockholm

Spotify has been developed since 2006 by Spotify AB based in Stockholm , Sweden . The company was founded by Daniel Ek and Martin Lorentzon (former CEO of TradeDoubler ) in Stockholm. According to Axel Bringéus, former head of international growth at Spotify, the music service "emerged as a legal alternative to piracy".

Spotify AB is a subsidiary of Spotify Limited based in London , which in turn is a subsidiary of Spotify Technology SA in Luxembourg . Spotify has offices in 18 countries.

The service was launched on October 7, 2008 after licensing deals were signed with major music labels.

In 2011, Spotify achieved sales of around 188 million euros and suffered a loss of 40 million euros. The business model was changed in April of this year. Users who had used the free service for more than six months were only allowed to listen to free music for about ten hours a month. In addition, a song was allowed to be played a maximum of five times over the entire period of use. This should encourage more users to use a paid account. Up to a maximum of ten hours, 2.5 hours per week were credited. In April 2012, these restrictions were lifted indefinitely in the US. There has been no restriction for Germany since January 2014.

In March 2014, Spotify acquired The Echo Nest , a provider specializing in the accurate analysis of music pieces to improve Spotify's automatic recommendation service.

Spotify was a profitable company for the first time in 2018. On February 28, 2018, the Luxembourg- based holding Spotify Technology SA announced its initial public offering on the New York Stock Exchange . It took place on April 3, 2018 by means of a direct public offering, without the issue of new shares, without a blocking period , without a price formation process organized in advance by banks and therefore without a price guarantee, which was a first in the history of the NYSE. Before the listing began, the stock exchange had set a reference price of $ 132 per share for guidance.

In February 2019, Spotify announced the acquisition of the podcast services Anchor and Gimlet in order to position itself more strongly in this market. Following the takeover of Gimlet and Anchor, the audio streaming service will acquire the podcast studio Parcast in March 2019. In June 2019 it was announced that Spotify had acquired a stake in the Internet currency Libra .

On June 6, 2019, Spotify announced a partnership with Higher Ground, the production company of former US President Barack Obama and his wife Michelle Obama, to produce podcasts exclusively for the platform.

On September 12, 2019, Spotify announced the acquisition of SoundBetter, the music production platform.

User numbers

Spotify reached one million members on March 2, 2009 after the program was first offered for download in Sweden in October 2008. In the period between 2011 and the end of 2013, both the number of registered users doubled to 30 million and the number of paying subscribers to 8 million.

On May 21, 2014, Spotify announced it had 10 million paying subscribers and 40 million active users in 56 countries. At the beginning of 2015, 60 million users and 15 million premium subscribers were already registered. On March 21, 2016, Spotify announced 30 million paying subscribers. In June 2016, Spotify said it had 100 million active users. In mid-September 2016, Daniel Ek announced that Spotify now has 40 million paying customers.

As of March 2, 2017, 50 million paying subscribers were reported after major competitor Apple Music hit 20 million paying subscribers in December 2016. As of August 1, 2017, Spotify had a total of over 60 million paying subscribers. By early 2018, it had more than 71 million paying subscribers and a total of 159 million active users. For the second quarter, 83 million paying members were reported.

On February 5, 2020, Spotify announced it had 124 million paying subscribers and a total of 271 million active users in 79 countries worldwide.

As of April 29, 2020, Spotify had 130 million paying subscribers and a total of 286 million active users in 79 countries worldwide.

As of July 29, 2020, it reported more than 299 million active users and over 138 million paying subscribers in 92 countries.

financing

The company is financed by investors who provided around 388 million euros by the beginning of 2014. This contrasted with an estimated market value of around 2.9 billion euros. Supporters include the US investment banking and securities trading company Goldman Sachs , 15 percent of the US financial services company Fidelity Investments , the US beverage group The Coca-Cola Company , Morgan Stanley , Credit Suisse and Deutsche Bank .

On March 30, 2016, it was announced that Spotify is borrowing $ 1 billion from investors.

Geographic availability

Worldwide availability of Spotify (as of July 2020)

An account can currently be created in 92 countries. This includes large parts of Europe and America, including the DA-CH region. Spotify has been available in Austria since November 15, 2011, in Belgium and Switzerland since November 16, 2011. In Germany, Spotify launched its offer on March 13, 2012 after the launch was delayed due to fee negotiations. On February 12, 2013, Spotify was also activated in Poland, Portugal and Italy. Since April 16, 2013, Spotify is also available in Mexico, Malaysia, Hong Kong, Singapore, Estonia, Latvia, Lithuania and Iceland. On September 24, 2013, Spotify started its service with Argentina for the first time in a South American country as well as in Greece, Taiwan and Turkey. Spotify has also been available in Israel since March 12, 2018 and in India since February 26, 2019. Since July 15, 2020, Spotify has also been available in Albania, Bosnia and Herzegovina, Kazakhstan, Kosovo, Croatia, Moldova, Montenegro, North Macedonia, Russia, Serbia, Slovenia, Ukraine and Belarus. Spotify is represented in 92 countries worldwide.

Cooperations with telecommunications companies

On October 2, 2012, Deutsche Telekom, in cooperation with Spotify, launched the “Special Complete Mobil Music” mobile tariff, which enables music to be transmitted via Spotify without the Spotify data volume being counted towards the tariff's inclusive volume. Observers see this as a violation of the principle of net neutrality . In January 2013 Orange Switzerland (today: Salt Mobile ) started a cooperation with Spotify, in June 2014 the Austrian mobile operator Hutchison Drei Austria . Spotify is currently part of Deutsche Telekom's StreamOn zero-rating program, along with other streaming providers. Streaming is also possible in the Vodafone Music Pass regardless of the data volume.

Functions

The user must create a Spotify account in order to use the service. This account can then be used from any number of devices, but simultaneous playback (“streaming”) on several devices is technically prevented.

Every user can listen to the titles of all major labels and smaller labels, whereby the repertoire is constantly being expanded with new labels. The pieces of music can be found by searching for artists, titles or albums. Furthermore, music files stored on the hard drive can be imported into Spotify to play music that is not available via Spotify. The users can also create music playlists (playlists), exchange them with other users and edit them together. For this purpose, the playlist link can be dragged directly into an email or instant messaging window. If the recipient clicks on the link, the playlist loads into the recipient's Spotify account. Like normal links, these playlist links can be used anywhere, for example on websites. The same principle applies to individual pieces of music.

Spotify transfers music files over the Internet through on-demand streaming . Until the end of 2014, the peer-to-peer method (P2P) was also used, in which frequently used music data was transferred from the cache of other Spotify users' computers. The music is transmitted in Vorbis format at up to ~ 320 kbit / s for premium users. Streaming to DLNA devices is not possible. Spotify can "scrobble" the music you are listening to to Last.fm.

Podcasts

Since 2016 it has also been possible to listen to podcasts on Spotify . Spotify offers some podcasts exclusively, while others are also listed on iTunes and other platforms. The episodes can be saved offline like music songs with premium access. Like the music, the individual programs are divided into categories, and Spotify also gives individual recommendations. In 2018, podcast usage on Spotify worldwide increased by 367 percent compared to the previous year (in Germany by 150 percent).

According to Spotify, Fest & Flauschig is the company's most successful podcast worldwide in 2017. It is estimated to have several 100,000 listeners. In 2019, the two German podcasts Mixed Hack and Fest & Flauschig took 3rd and 4th place in the Spotify annual charts worldwide. There are currently more than 1.5 million podcast titles on the platform, 40,000 of which are in German.

Spotify Connect

Spotify Connect is available on a variety of network-compatible playback devices. These include, for example, network players , AV receivers , Blu-ray players, etc. Spotify Connect is not an independent client, but an interface. The use of Spotify Connect sometimes requires a premium account. The Spotify Connect-enabled player can be contacted via one of the clients listed in the Platforms section. This then contacts the Spotify server, takes over the music stream and playback. The complete control (play, pause, forward / backward, song / album / playlist selection, ...) remains with the calling client.

A major advantage of this method over other coupling methods commonly used in the field (e.g. Bluetooth ) is that there is no (redirected) sound output on the calling client. This is then available again for independent sound output (e.g. in the case of a mobile phone calls).

Platforms

Spotify

Spotify logo with text.svg
Basic data

developer Spotify AB
Publishing year 2008
Current  version 1.1.31 ( Windows , macOS , Linux )

8.5.60 ( Android )
June 1, 2020
8.5.60 ( iOS )
June 1, 2020
1.31.0 ( Android TV )
June 1, 2020

operating system Windows , macOS , Linux , iOS , Android , Android TV , MeeGo , S60 , Windows Phone , Blackberry OS , webOS , PlayStation , Xbox One
programming language C ++ , Python
category Streaming music
License Freeware
German speaking Yes
www.spotify.com

Pc

The operating system required is at least Windows 7 or macOS from " Mavericks ". Even Linux is natively supported, the client can be downloaded using additional repositories ( Snap or Flatpak ). Under Ubuntu 18.04, Spotify can be downloaded from the Software Center without any detours or registration. Spotify is also integrated into programs such as Clementine , Shazam and Musixmatch .

Since June 20, 2017, Spotify has also been available as an app in the Microsoft Store .

In November 2012, Spotify started to deliver a web-based version to some users. The service has been available to all users since the beginning of 2013.

mobile devices

There are apps for Android , iOS and Windows phones as well as for Amazon's Fire tablets and some Symbian , MeeGo and Blackberry smartphones.

Since December 11, 2013, music can be heard for free on Android and iOS smartphones, but only with random playback. Windows Phone has also been supported since 2014. Also, only six tracks per hour can be skipped. This limitation does not exist on desktop computers and tablets with the same operating systems.

Smart home

Spotify also supports the smart home devices Amazon Echo , Apple TV (as well as Siri) and Google Home .

Smart TV

Spotify has supported Google Cast since September 29, 2015, and an app for Android TV was released on May 18, 2016 . There is also a Spotify app for newer Samsung televisions, where playlists can be called up, among other things.

Apps were also available for smart TVs from Philips , LG and Amazon Fire TV until mid-2017 .

Game consoles

Since March 30, 2015 Spotify replaced on the PlayStation 3 and PlayStation 4 the company's own streaming music service Music Unlimited from Sony . Due to the discontinuation of Music Unlimited , every previous subscriber received a free, two-month trial access to Spotify Premium.

Since August 8, 2017, Spotify has also been available on Xbox One .

cars

Swedish car manufacturer Volvo is integrating Spotify into some of its vehicles. This is made possible with the help of the Ericsson "Connected Vehicle Cloud" technology. In November 2014, Spotify announced a cooperation with BMW and Mini , which will allow drivers of these brands to use the Spotify app on Apple iOS devices via the onboard computer of their vehicle. The Californian company Tesla Motors also equips the S, X and 3 model series with a free, integrated Spotify account as standard.

criticism

Facebook compulsion

The use of Spotify was initially only possible in connection with a Facebook account, which resulted in massive criticism from data protectionists. Peter Schaar was of the opinion that the service violated the Telemedia Act , other data protection officers advised against its use. In June 2012, Spotify lifted this restriction in Germany.

Remuneration of the artist

According to research by the Hessischer Rundfunk from April 2013, an artist received in the best case only 0.164 cents per playback. By way of comparison: if an artist sells an album with 13 songs on CD, the best case scenario is around 3 euros. The album would have to be broadcast around 145 times for the artist to get a similar return. The record label ultimately decides whether the music is offered on Spotify. The numbers come from a statement that a band submitted to the Hessischer Rundfunk. On the other hand, it was objected that the revenues per stream are significantly higher than those per song played on the radio.

At the beginning of December 2013, Spotify responded with a detailed list of income, expenses and distributions to the artists. According to this, 70% of the income goes to the rights holders, who would currently receive 0.6-0.84 US cents per piece of music transferred.

Criticism of the remuneration model was also expressed by various artists and musicians, who therefore initially opposed the publication of their work on Spotify. The Black Keys drummer Patrick Carney justified his band's decision not to make the album El Camino available on Spotify with the fact that streaming services for “a band that lives off music have no financial sense” Singer Thom Yorke announced that the music of his band Atoms for Peace will not be available on Spotify because of the poor remuneration. He announced on Twitter : “Do not be under any illusions. New artists you discover on Spotify are not paid. ”At the end of 2014, Taylor Swift and other artists (e.g. Sven Regener , Farin Urlaub and Herbert Grönemeyer ) spoke out against Spotify and some of their music was not made available on Spotify . Taylor Swift said in an interview with Yahoo Music: "With my life's work I do not want to contribute to an experiment that I believe does not fairly compensate authors, producers and artists." In September 2015, after starting to stream her music exclusively on Apple Music , she continued : “Apple treated me like the voice of the creative community that they really care about. It was very ironic for me that a multi-billion dollar company reacts to criticism with humility, while a startup with no cash flow reacts to it like a giant corporate machine. ”Since June 2017, Taylor Swift's complete music catalog has been available again on Spotify . Most of the work of the other artists mentioned was also available on Spotify in December 2018.

Privacy Policy

From August 19, 2015, Spotify introduced new data protection guidelines for the use of user data. It states that the photos and contacts shared with Spotify as well as access to the microphone and the location data of the device on which the Spotify app is installed will only be collected and used by Spotify AB in Stockholm, Sweden with the express consent of the user in order to improve the services and thus, for example, to enable the user to better personalize song selection. However, this access to the data can be activated or blocked individually at any time in the settings of the respective end device. After massive protests by customers over various Internet services because of the expansion of data collection, the Spotify boss apologized to his customers and tried to explain the new regulations. In addition, Daniel Ek announced a revised version of the new General Terms and Conditions of Business and Terms of Use as well as the data protection provisions for the coming weeks, which should be provided with more detailed explanations and which were published on September 9, 2015.

Switching off the Spotify capability of various devices

At the end of March 2018, Spotify announced that the protocol for Spotify-enabled end devices such as WLAN loudspeakers was changing and that the support for many devices that cannot be upgraded would therefore be canceled without replacement.

Anti-Semitic playlists

In early 2020, the Auschwitz-Birkenau memorial called on Spotify to take action against hateful content that denies the Holocaust , for example, according to a media report by the Times of Israel . Users are allowed to create playlists whose titles are anti-Semitic or glorify Hitler. In some cases, photos of swastikas or other hate symbols or around 110 publicly accessible user profiles with the pseudonym Adolf Hitler were published. Spotify announced that it will proactively remove the content listed by the Federal Testing Office for Media Harmful to Young People. Further complaints should be examined on a case-by-case basis. According to the Tagesspiegel , the company began to delete user profiles with the names of National Socialists. Playlists that bore anti-Jewish titles or played down the Holocaust or demeaned its victims were also removed. These were called “Straight Outta Auschwitz” or “Gas the Jews music”.

See also

literature

  • Maria Eriksson et al .: Spotify Teardown: Inside the Black Box of Streaming Music. The MIT Press, 2019, ISBN 978-0-262-03890-4 .

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