How Spotify Works: Business Model and Revenue Streams
Spotify is a digital music streaming service with over 140 million active users. It offers a freemium service with an ad-supported free tier and an ad-free premium tier. It is available in 78 countries and has been a public company since 2018. Spotify’s business model is based on a freemium strategy, which allows the company to generate revenue from both free and paying users. Spotify also generates revenue from advertising, content partnerships, and data licensing. The company has been successful in growing its user base and revenue, but it faces challenges in profitability and competition.…