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Spotify Business Model Example

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Lisa Anderson
Published on 2022-12-08
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When you sign up for Spotify, you instantly gain access to an extensive music catalog. It makes money through a freemium business model in which users can access a limited free service supported by ads and an unlimited paid service for a set monthly fee. Spotifys music algorithms and community of users and artists are crucial to the quality of its premium experience. In 2011, only 10% of users were paying for premium services; by 2018, that number had risen to 46%. The company has always positioned itself as a legal alternative to illegal filesharing and iTuness paid song downloads. The majority of Spotifys income goes toward the royalties it owes to the recording companies.
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Spotify Business Model Example
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