Spotify: the Making of a Multi-billion Dollar Company in the Music Industry

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Music has become a massive hit in our world today. It has influenced people all around the world and the industry is only growing more and more rapidly. However, when it comes to music, one of the first few things to pop up in your mind certainly must be Spotify. Spotify has become the biggest music streaming service in the world, with over 159 million active users in 61 countries and a library of music over 35 million songs. It started in 2005 as a small startup with founders Daniel Ek and Martin Lorentzon who met to come up with the idea that we now know as Spotify. It was then established in Stockholm, Sweden in 2006. In the spring of 2007, the company released its first public beta version and in the summer released its first Mac edition. Within the next year, ‘Spotify’ transitioned into a free music service which included advertisements with hope that users would take up on the option of upgrading their account to ad-free music for 10 USD per month.

Since then, it has turned out to be a huge success all around the world with hundreds of millions of people using their services. Other popular music platforms have also since surfaced including Apple’s own Apple Music in 2015 which has proved to be Spotify’s biggest competition. Securing deals with popular hit artists such as Drake and Taylor Swift, Apple Music began to grow. Moreover, Apple music moved on from its traditional pay per download for each song model to a monthly subscription which would allow users unlimited access to its music. Other notable music platforms include Soundcloud and Pandora which allow more new and emerging artists to share their music on their platforms. However, all these platforms have so far failed to surpass Spotify as the leading music streaming service in the world.

With a worth of 23 billion US dollars, Spotify seems to be heading in the right direction in the billion dollar music industry. Super tech companies have taken a further step in developing music services with speakers and home assistants ensuring more advanced and useful ways to stream music. With technology becoming more advanced day by day, it will certainly be interesting to see how Spotify can further advance the music industry and what it will come out with next.

Featured Image: https://techcrunch.com/2017/12/08/spotify-tencent-share-swap/

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