Spotify facts for kids
|Type of business||Public|
|Traded as||NYSE: SPOT|
|Founded||23 April 2006|
|Country of origin||Sweden|
|No. of locations|
|Key people||Daniel Ek (CEO, Chairman)
Barry McCarthy (CFO)
|Industry||Streaming on-demand media|
|Revenue||€6.764 billion (2019)|
|Net income||-€186 million (2019)|
|Employees||3,651 (31 December 2018)|
|Subsidiaries||Tencent Music (46.6%)|
|Alexa rank||71 (January 2020[update])|
(124 million paying)
|Launched||7 October 2008|
Founded in 2006, the company's primary business is providing an audio streaming platform, the "Spotify" platform, that provides DRM-protected music, videos and podcasts from record labels and media companies. As a freemium service, basic features are free with advertisements or automatic music videos, while additional features, such as offline listening and commercial-free listening, are offered via paid subscriptions.
Launched on 7 October 2008, the Spotify platform provides access to over 50 million tracks. Users can browse by parameters such as artist, album, or genre, and can create, edit, and share playlists. Spotify is available in most of Europe and the Americas, Australia, New Zealand, and parts of Africa and Asia, and on most modern devices, including Windows, macOS, and Linux computers, and iOS, and Android smartphones and tablets. As of February 2020, the company had 271 million monthly active users, including 124 million paying subscribers.
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, who then pay artists based on their individual agreements. Spotify has faced criticism from artists and producers including Taylor Swift and Thom Yorke, who have argued that it does not fairly compensate musicians. In 2017, as part of its efforts to renegotiate license deals for an interest in going public, Spotify announced that artists would be able to make albums temporarily exclusive to paid subscribers if the albums are part of Universal Music Group or the Merlin Network.
Spotify's international headquarters are in Stockholm, Sweden, though each region has its own headquarters. Since February 2018, it has been listed on the New York Stock Exchange and in September 2018, the company relocated its New York City offices to 4 World Trade Center.
The spotify web page instantly creates a listing of local music files which the user has stored on their computer or other devices. It does not mechanically duplicate or import the listing of music files. If the user prefers not to use the listing utility it can be inactivated in the preferences software application. The files created on the user’s computer can be imported to any device such as a mobile device with the use of the mobile client, or even upload these files to the Spotify Software Application. Users may only import or copy files that they have legally attained, even though the user has the choice to not utilize the Spotify service to import or copy their content that they have downloaded from other sites illegally online.
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