Spotify Technology S.A. is an audio streaming and media services provider that offers subscribers on-demand access to songs on their desktop computers, laptops, smartphones, tablets, and home entertainment systems.
The company was founded by Daniel Ek, Martin Lorentzon on 23 April 2006 in Stockholm, Sweden. Spotify went public on April 3, 2018, and trades on the New York Stock Exchange (NYSE) under the ticker ‘SPOT’. The company trades on NYSE as Spotify AB.
Spotify operates through the Premium and Ad-Supported segments. The Premium segment offers subscribers unlimited online and offline high-quality access to music and podcasts.
The company also offers music listening without commercial breaks. The Ad-Supported segment enables provides users with limited on-demand online access to music and unlimited online access to podcasts on supported devices.
It also serves as both a premium subscriber acquisition channel and a robust option for users who don’t pay the subscription fee. Spotify is available in most of Europe and the Americas, Oceania, and parts of Africa and Asia.
Spotify main competitors
- Apple Music
- Amazon Music
- YouTube Music
- Google Play Music
Key Spotify Milestones
In July 2011, Spotify launched in the United States by offering a six-month ad-supported trial period, where new users could listen to an unlimited amount of music for free.
In March 2016, Spotify raised $1 billion in financing by debt alongside a discount of 20% on shares once the initial public offering (IPO) of shares takes place.
In March 2017, Spotify acquired Mighty TV an app connected to television streaming services like Netflix. Spotify uses MightyTV to improve its advertising efforts on the free tier.
Following the 2018 IPO, Spotify was valued at $26.5 billion on the first day to become the world’s most valuable streaming music service. During the IPO, Spotify shares opened at $165.90, up nearly 26 percent from a reference price of $132 set by the NYSE.
On 14 November 2018, Spotify announced a total of 13 new markets in the MENA region, alongside the creation of a new Arabic hub and several playlists, while supporting right-to-left text in their apps.
Spotify Frequently Asked Questions
Does Spotify pay dividends?
Spotify does not pay dividends and has no intention to declare or pay a dividend in the immediately foreseeable future. Profits are reinvested into building the business.
Has Spotify stock split?
Since going public, Spotify has had zero stock splits. The company has not announced any future stock splits.
Does Spotify have a direct stock purchase plan or dividend reinvestment plan?
Spotify does not have a direct stock purchase plan or a dividend reinvestment plan. To purchase Spotify stock, investors need to contact a licensed stockbroker.