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. Later that month, Spotify also acquired MightyTV, an app connected to television streaming services, including Netflix and HBO Go, that recommends content to users. The company also introduced “Spotify Running”, a feature aimed at improving music while running with music matched to running tempo, and announced that podcasts and videos (“entertainment, news and clips”) would be coming to Spotify, along with “Spotify Originals” content.
The aim was to help users to listen to the music they want without information overload or spending time building their own playlists. The ability to purchase and download music tracks via the app was removed on 4 January 2013. Another source of income was music purchases from within the app, however this service was removed in January 2013. In September 2025, Spotify began removing restrictions preventing free users from listening to specific tracks. In November 2018, Spotify announced it was opening up Spotify Connect to all of the users using its Free service, however, these changes still required products supporting Spotify Connect to support the latest software development kit.
- In May 2020, Spotify teamed up with ESPN and Netflix to curate podcasts around their Michael Jordan documentary The Last Dance, and in September, Spotify signed a deal with Chernin Entertainment to produce movies and TV shows.
- In November 2023, Spotify announced a new royalty model taking effect in 2024, aiming to reduce the amount of “fraudulent” royalties collected from “functional” non-music tracks with short lengths (such as environmental sounds and white noise).
- In February 2020, Spotify announced it was acquiring The Ringer, and inheriting the previously established union.
- In April 2025, Spotify expanded its AI Playlist beta feature to Premium listeners in over 40 new English-speaking markets, including countries in Africa, Asia, Europe, and the Caribbean.
- While the streaming music industry in general faces the same critique about inadequate payments, Spotify, being the leading service, faces particular scrutiny due to its free service tier, allowing users to listen to music for free, though with advertisements between tracks.
- This approach is not intended to raise fresh capital, but to let investors get their returns.
Spotify: Music and Podcasts
On 5 February 2020, Spotify announced its intent to acquire Bill Simmons’ sports and pop culture blog and podcast network The Ringer for an undisclosed amount. On 26 March 2019, Spotify announced they would acquire another podcast network, Parcast. 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. 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.
App Functionality
The changes faced a mixed reaction from the music industry, who believed that it would be detrimental to emerging musicians, but would make a larger share of total royalty payments available to musicians. In 2013, Spotify revealed that it paid artists an average of $0.007 per stream. Spotify for Artists states that the company does not have a fixed per-play rate; instead, it considers factors such as the user’s home country and the individual artist’s royalty rate.
- In March 2021, Spotify acquired app developer Betty Labs and their live social audio app, Locker Room, On 12 May 2021.
- In December 2015, Quartz reported that songs in Discover Weekly playlists had been streamed 1.7 billion times.
- The standalone app was made available to all iOS and Android users in the United States since 4 June 2019.
- In 2016, Spotify introduced its Daily Mix feature, which creates playlists of music that a user has previously listened to on the platform.In 2017, Spotify introduced RapCaviar, a hip-hop playlist.
- 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.
- Audio files must either be in the .mp3, .mp4 (.mp4 files that have video streams are not supported), or .m4p media formats.
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. 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. In June 2015, Spotify announced they had acquired Seed Scientific, a data science consulting firm and analytics company.
In February 2021, Spotify announced their plans to introduce a HiFi subscription, to offer listening in high fidelity, lossless sound quality. This eligibility rule only applies to royalties for sound recordings, not musical compositions. Some of the premium options users may choose from include individual, duo, family, and student.
Music Downloader / MP3 Player
The primary point of criticism centers around what artists, music creators, and the media have described as “unsustainable” compensation. Spotify Wrapped had generated two billion impressions worldwide, and more ninety million Spotify users share their Spotify Wrapped statistics frostybet casino online, especially through social media. Spotify also has a ‘blend’ feature in which two users’ music preferences are mixed in a shared playlist. Spotify had added social media-related features to its platform, especially to compete for ad revenue and to increase its media-related users.
Acquisitions, podcasting and exclusivity deals
In response to the allegations about unfair compensation, Spotify claims that it is benefitting the industry by migrating users away from unauthorized copying and less monetized platforms to its free service tier, and then downgrades that service until they upgrade to paid accounts. Spotify distributes approximately 70% of its total revenue to rights-holders, who will then pay artists based on their individual agreements. Despite the extensive global coverage, the service remains unavailable in several countries and territories, including Afghanistan, British Indian Ocean Territory, Central African Republic, China, Cuba, Eritrea, Iran, Myanmar, North Korea, Russia, Somalia, South Sudan, Sudan, Syria, Turkmenistan, and Yemen. Among them is an increased lack of non-online social spaces, an increased lack of privacy from strangers, and a source of unbridled expression particularly with its media-related podcasts. Spotify users can also ‘jam’ sessions where users can create and contribute live music playing sessions with their Spotify friends. In April 2014, Spotify moved away from the peer-to-peer (P2P) system they had used to distribute music to users.
It also said that Apple believed Spotify users on the app store were Apple’s customers and not Spotify’s. In March 2023, Spotify announced a partnership with Patreon, which Spotify claimed would “enable creators to expand their creative business through direct payments from fans, and allow fans to listen to their Patreon content on Spotify”. In May 2022, Spotify announced a partnership with the online game platform and game creation system Roblox, the partnership saw Spotify as the first streaming brand to have a presence within the game with the launch of “Spotify Island”.
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. 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. The integration also enabled Spotify within the SXSW GO app to help users discover and explore artists performing at the conference. In January 2015, Sony announced PlayStation Music, a new music service with Spotify as its exclusive partner. In November 2021, Spotify acquired audiobook company Findaway, including its publishing imprint OrangeSky Audio.
In November 2023, Spotify announced a new royalty model taking effect in 2024, aiming to reduce the amount of “fraudulent” royalties collected from “functional” non-music tracks with short lengths (such as environmental sounds and white noise). Spotify generates revenue by selling premium streaming subscriptions to users and advertising placements to third parties. In February 2018, Spotify integrated with the gaming-oriented voice chat service Discord on desktop clients, allowing users to display their currently playing song as a rich presence on their profile, and invite other users with Spotify Premium to group “listening parties”.
In July 2025, several artists joined a boycott of Spotify because Spotify CEO and co-founder Daniel Ek raised another $600 million in support of German defense company Helsing through his investment fund. On 26 January, Neil Young removed his music from Spotify after they refused to remove the podcast. This policy was revoked in June because the company deemed the original wording to be too “vague”; they stated that “Across all genres, our role is not to regulate artists. Therefore, we are moving away from implementing a policy around artist conduct”.