Further information Spotify is one of the most leading online streaming services worldwide. As of March 2017, the platform, which is headquartered in Stockholm and London, had 50 million paying users and approximately 100 million monthly active listeners. Spotify’s appeal does not only lie in its music streaming and online radio capabilities but the platform’s strong social components such as users being able to add and message friends, as well as being able to create and share music playlists as well as recommend tracks to connected users. Spotify also allows users to login with their Facebook accounts and to cross-post their listening habits to the social network.
In 2014, the company’s revenue surpassed 1 billion euros for the first time but not without a cost – that year, Spotify’s net loss amounted to 162 million euros. A major part of Spotify’s expenses are the royalty fees that the streaming platform has to pay to the music artists and license holders, with payments amounting to over 882 million U.S. dollars in 2014. With digital streaming music revenue in the United States surpassing 3.8 billion U.S. dollars in 2016, Spotify is strongly positioned to take advantage of the expanding North American streaming market.
As such, the company is ranked among the most valuable startup companies with a valuation of 8.5 billion U.S. dollars as of March 2017.