Spotify is the world’s biggest music streaming platform by number of subscribers. Users of the service simply need to register to have access to one of the largest collections of music in history, plus podcasts and other audio content.
It operates on a freemium model. Free Spotify access comes with lower sound quality, advertisements and requires an internet connection. Those who pay for Spotify Premium can listen uninterrupted to high-quality recordings and are able to download songs for offline listening.
Spotify was founded in 2006 in Stockholm, Sweden, by Daniel Ek and Martin Lorentzon. The two wanted to create a legal digital music platform to respond to growing challenge of online music piracy in the early 2000s.
Eventually convincing record labels to agree to share content in return for an aggregate 20% stake, Spotify was launched in 2008. It was an instant success, with a Facebook partnership helping it rise rapidly to prominence. Surviving the transition to mobile technology, Spotify went public in April 2018, with a market cap of $26.5 billion after the first day of trading.
It has drawn criticism from recording artists, who complain that it pays too little. Claims to democratize the music industry have also been questioned, with the world’s biggest four music labels responsible for 87% of content available on Spotify.
Unfair or not, with the days of physical music long behind us (with the exception of vinyl junkies), Spotify dominates the way we consume music in the 21st century. It does not have the run of the market, however. Its rivals include Deezer, Pandora, and most ominously Apple Music, which has gained market leadership in the US and a few other countries.
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Get the ROX guide nowWe have collected data and statistics on Spotify. Read on below to find out more.
Spotify key statistics
- Spotify generated €7.85 billion revenue in 2020, a 16% increase year-on-year
- Spotify has never published an operating profit. In 2020, it posted a €581 million loss
- 365 million people use Spotify once a month, 165 million are subscribers
- 70 million songs are available on Spotify and 2.9 million podcasts
Spotify overview
| Launch date | 23 April 2006 |
| HQ | Stockholm, Sweden |
| People | Daniel Ek (CEO, co-founder), Martin Lorentzon (co-founder) |
| Company type | Public (NYSE: SPOT) |
| IPO date | 3 April 2018 |
Spotify revenue
Spotify annual revenue
| Year | Revenue |
| 2016 | €2.93 billion |
| 2017 | €4.07 billion |
| 2018 | €5.24 billion |
| 2019 | €6.75 billion |
| 2020 | €7.85 billion |
Spotify ARPU
| Year | Average revenue per user |
| Q1 2018 | €4.72 |
| Q2 2018 | €4.89 |
| Q3 2018 | €4.73 |
| Q4 2018 | €4.89 |
| Q1 2019 | €4.71 |
| Q2 2019 | €4.86 |
| Q3 2019 | €4.67 |
| Q4 2019 | €4.65 |
| Q1 2020 | €4.42 |
| Q2 2020 | €4.41 |
| Q3 2020 | €4.19 |
| Q4 2020 | €4.26 |
| Q1 2021 | €4.12 |
| Q2 2021 | €4.29 |
| Q3 2021 | €4.34 |
Note: This does not include non-premium users
Source: Company data
Spotify profit
| Year | Operating loss |
| 2010 | (€28 million) |
| 2011 | (€45 million) |
| 2012 | (€83 million) |
| 2013 | (€63 million) |
| 2014 | (€188 million) |
| 2015 | (€230 million) |
| 2016 | (€539 million) |
| 2017 | (€1.23 billion) |
| 2018 | (€78 million) |
| 2019 | (€186 million) |
| 2020 | (€581 million) |
Source: Company data
Spotify users
Spotify annual users
| Year | Users |
| 2015 | 77 million |
| 2016 | 104 million |
| 2017 | 138 million |
| 2018 | 180 million |
| 2019 | 232 million |
| 2020 | 299 million |
| 2021 | 365 million |
Note: Values are from Q2 of each respective year
Spotify users by region
| Year | Europe | North America | Latin America | Rest of World |
| 2016 | 40 million | 36 million | 20 million | 8 million |
| 2017 | 51 million | 46 million | 28 million | 13 million |
| 2018 | 67 million | 56 million | 38 million | 20 million |
| 2019 | 84 million | 65 million | 49 million | 35 million |
| 2020 | 102 million | 78 million | 66 million | 54 million |
| 2021 | 121 million | 85 million | 78 million | 71 million |
Source: Company data
Spotify subscribers
Spotify annual subscribers
| Year | Subscribers |
| 2015 | 22 million |
| 2016 | 36 million |
| 2017 | 59 million |
| 2018 | 83 million |
| 2019 | 108 million |
| 2020 | 138 million |
| 2021 | 165 million |
Spotify subscribers by region
| Year | Europe | North America | Latin America | Rest of World |
| 2018 | 33 million | 26 million | 17 million | 7 million |
| 2019 | 43 million | 32 million | 22 million | 11 million |
| 2020 | 54 million | 40 million | 29 million | 15 million |
| 2021 | 66 million | 48 million | 33 million | 18 million |
Source: Company data
Spotify age demographics
| Age | Percentage of userbase |
| 18-24 | 26 |
| 25-34 | 29 |
| 35-44 | 16 |
| 45-54 | 11 |
| 55+ | 19 |
Note: Covers US age demographics
Source: Verto Analytics
Spotify gender demographics
| Gender | Percentage of userbase |
| Female | 56 |
| Male | 44 |
Note: Covers US age demographics
Source: Verto Analytics
Spotify usage time by region
| Region | Average daily usage (minutes) |
| Asia Pacific | 110 |
| Europe | 99 |
| Latin America | 117 |
| Middle East & Africa | 124 |
| North America | 140 |
Source: GlobalWebIndex
Spotify vs Apple Music: users
Spotify FAQ
How many songs are on Spotify?
Spotify currently holds 70 million songs in its library, with 60,000 added every day
Who is the most streamed artist on Spotify?
Drake is the most streamed artist, with more than 40 billion lifetime plays (ChartMasters)
What is the most streamed song on Spotify?
Ed Sheeran’s Shape of You holds the top spot at 2.9 billion plays (full list)
How many countries is Spotify available in?
Spotify is currently available in 171 markets
How many Spotify users access the app once a day?
44% of users listen to Spotify on a daily basis (Goodwater Capital)
How many podcasts are on Spotify?
Spotify currently holds 2.9 million podcasts in its library
How much does Spotify pay an artist per stream?
Estimates vary on how much a Spotify stream is worth to artist: from $0.006-0.0084 to as low as $0.00318 per stream (The Verge/Soundcharts)
How much has Spotify paid out to rights holders since launch?
Spotify claims it has paid €21 billion to rights holders
