The journey of Spotify
The journey of Spotify, a huge company that was founded back in 2006. Spotify now is the biggest music live stream provider in the world and is counting more than 1.600 employees. They were founded in Switzerland by Martin and Daniel EK.
The name Spotify comes from “spotting” a song that a person has forgotten but found it again. The other end of the name comes from identifying the song that has been forgotten.
Spotify is a company that has been noted on the New York Stock Exchange since 2018. The company was worth 30 billion dollar in that time because the exchange was on 165 dollar per share.
Spotify offers various ways in using their services of live streaming music. It has a freemium based business model. This means that the service can be used for free, but will have certain advantages when having the premium version.
When you have the premium version to play the songs you would like to hear you don’t have to listen to the ads. In the case of people not having the premium account for Spotify you will have to listen to ads every half of an hour. Spotify makes money of their users either way. On the one side they make money from advertisers that want to advertise on their platform (to their users of course)
On the other side they make a lot of money on their premium members. Spotify has more than 160 milion users in total what makes their income extremely high for a live stream service for music.
Artists on Spotify
For an artist on Spotify it’s very interesting to start a music career on this platform. It’s a relatively easy way to create an audience and spread the music and content they create.
It is easier for existing artists that already have made a name for themselves to grow their influence and audience. The algorithm of Spotify is based on the way audiences perceive a certain artist and how big this audience is ofcourse.
A great solution to this rising problem for artists that are looking to expand their audience is buying Spotify plays. When an artist that has made great content buys Spotify plays, a lot can happen. For example, when the artist gets a lot of Spotify plays in a small amount of time, the algorithm can pick up on this. This will increase the likelihood of other people learning about this artist.