Ever pondered who owns Spotify, the digital music streaming service?
It’s essential to recognize its owner, as Spotify is revolutionizing the music industry. Find out here! Read this article to discover who owns Spotify. Get the full scoop.
Spotify is a top name when it comes to streaming music. It offers 60 million users access to millions of songs from around the world. It also provides powerful tools for playlist and customisation. But, who owns Spotify? Uncover the key people behind this popular streaming platform.
Spotify was created by Daniel Ek and Martin Lorentzon in 2006 in Stockholm, Sweden. In 2020, Spotify had a market value of almost $50 billion, as a publically traded business listed on the New York Stock Exchange.
The company has over 10 major shareholders. They are both institutional and individual investors such as:
- Axel Springer Group
- Tiger Global Management
- Tencent Holdings
- Sequoia Capital Global Equities
- Luxor Capital Group LP
- The Chernin Group LLC
History of Spotify
Spotify was founded in 2008 by Daniel Ek and Martin Lorentzon. Two Swedish entrepreneurs. Now it has offices in 19 countries. It had 360 million registered users in 65 countries after its first year. It went public on the NYSE on April 3rd 2018.
They created Spotify to fight illegal music downloading from file-sharing websites. It has a “freemium” model, where users can access music for free with ads or pay for ad-free music. Besides music, it also offers playlists tailored to their tastes, podcast streaming services and integration with other applications.
Headquartered in Luxembourg, Spotify Technology S.A. (formerly Spotify AB) is publicly traded on the NYSE with symbol SPOT. Daniel Ek is the CEO and Chairman of the Board. It has four American directors: Shiva Rajaraman (COO), Rashid Russelly (VP Worldwide Sales), Kevin Morrissey (CFO) and Andrew Marcus (Head of Product).
Spotify is a media services provider from Stockholm, Sweden. Founded in 2006, it’s the world’s largest music streaming service with over 345 million users. It offers both a free, ad-supported tier and premium plans.
Ownership: Access Industries Holding US LLC is the majority shareholder of Spotify, owning 55%. The founder Daniel Ek has a 10% stake. Other major shareholders include Industrifonden, Sony Music Entertainment Japan and TPG Partners.
The company’s board of directors has nine members. Chairman John Thain (former CEO of Goldman Sachs and Merrill Lynch). Charlotta Forssman (co-Founder of Nordic Investment Bank), Chen Yidan (founder and former vice chairman of Tencent), Seth Farbman (formerly at Ogilvy & Mather and Google), Loretta Lee (Executive Vice President at Fubon Financial Holding Company), Richard Hytner (former Deputy Chairman at Saatchi & Saatchi Advertising Agency), Francois de Ricqlès (former executive director at Nestlé S.A.), Susanne Dayal Andersen (formerly CFO and EVP Global Sales & Distribution at Ericsson), Monique Miller (Global Brand Director, Beiersdorf AG) and CEO Daniel Ek.
Spotify’s Business Model
Spotify is a digital music, podcast and video streaming platform. It provides millions of songs from different artists worldwide. As of July 2019, it has 286 million active users and is in 79 markets. Users can access the platform free or by subscribing to one of its plans. Subscribers receive ad-free streaming and unlimited song skips.
Spotify’s business model relies on advertising-driven revenue and subscription payments. It sells advertising space to brands. It also receives payments from subscribers and streaming services like Apple Music. Plus, it uses data resources in partnerships with third-party companies, such as ticketing websites and merchandisers. The goal is to give fans an enjoyable listening experience and musicians tools to broadcast their creations. Daniel Ek owns 14% of stock issued shares at NASDAQ. He became majority owner after Spotify went public in 2018.
Spotify’s Recent Acquisitions
Since 2006, Spotify has made strategic investments and acquisitions. In 2017, they acquired Loudr and Sonalytic to expand their music publishing platform. 2019 saw the company buy Gimlet Media and Anchor FM, now known as Spotify Studios. This has enabled users to access podcasts on a range of topics.
In 2020, they purchased Bill Simmons’ media network app The Ringer Podcast Network. This allows users to tune into popular sports writers and podcasts such as “The Rewatchables” and “Binge Mode”. The Ringer team also joined forces with Spotify Studios, offering new content.
In 2021, they agreed to buy analytics startup Locketa for $235 million. This will help grow direct deals with creators, plus give insights into user preferences and help podcast discovery.
Spotify’s Impact on the Music Industry
Spotify made its debut in 2008 and has revolutionized the music industry ever since. It is the biggest streaming platform in terms of market share, boasting 217 million active users as of July 2019 and an estimated worth of $23 billion. This surpasses its competitors, such as Apple Music and Amazon Music Unlimited.
Spotify’s success is due to its mission of bringing music to people all over the world and its capabilities as a streaming platform. It offers more content than physical music formats such as CDs and records, and allows customers to tailor their listening experiences. This gives more fans the chance to discover their favorite artists’ work, and gives artists the opportunity to monetize their work with the Premium Option. It also provides them with data-rich insights about their listeners, which helps them make better decisions about marketing and promotion.
Additionally, Spotify’s algorithms are tailored to user tastes and preferences. It recommends tracks based on what listeners chose before, leading to more immediate sales and viral hits or up-and-coming talent gaining attention they didn’t have before. It is a revolutionary way of listening and purchasing music in an age where physical media sales are decreasing and interactive music platforms provide fans with more direct contact with the songs they love.
Spotify’s Financial Performance
Spotify has had fantastic financial success over the years. In 2017, they reported their first-ever profit of $361 million. This success is attributed to their expansion into other markets and their huge user base. Currently, Spotify has 217 million monthly active users and 108 million paying subscribers. These users generate an astonishing 5 billion streams each month.
Spotify is listed on the New York Stock Exchange and has a market cap of $28 billion USD. It is also listed on 9 exchanges in countries including France, Germany, and Switzerland. The main owners of Spotify are founders Daniel Ek and Martin Lorentzon, who own 20% of the shares. Technology Crossover Ventures (TCV) holds 10%, Tencent Music Entertainment Group 6%, Tiger Global Management 5%, and Baillie Gifford & Co 3%. Other major investors include Li Ka Shing’s Horizon Ventures (2%), Founders Fund (1%) and T Rowe Price (1%).
A consortium of investors led by Tencent Holdings Limited now own Spotify. Since it began in 2008, it has become a major streaming service with over 200 million users globally. Tencent Holdings have profited from Spotify’s success. But, with changing technology and consumer trends, it’s uncertain how well Spotify will do in the ever-changing music industry.
Frequently Asked Questions
Q1: Who owns Spotify?
A1: Spotify Technology S.A. is the owner of the streaming music service Spotify, which was founded in 2006.
Q2: Who is the CEO of Spotify?
A2: Daniel Ek is the co-founder and CEO of Spotify.
Q3: Is Spotify publicly traded?
A3: Yes, Spotify is publicly traded on the New York Stock Exchange (NYSE) under the ticker SPOT.