Spotify
Audio streaming · Luxembourg
Spotify streams music, podcasts and audiobooks to listeners for free with ads or through paid subscriptions, paying royalties to rights holders and earning from both.
What makes it different
It keeps about a third of each euro after paying for content.
32%Gross marginFY2025
Cost of revenue is mostly royalty and distribution costs, so margins depend on licence terms with record labels and publishers.
How big it is
How big is Spotify?
€17.2BRevenueFY2025
751MMonthly active users2025
7,287EmployeesFY2025
How it makes money FY2025
Subscriptions bring almost nine in ten euros.
- Premium89%€15.4B
- Ad-Supported11%€1.8B
How the business works
Free listening feeds paid subscriptions.
- 1Free, ad-funded listeners
- 2Listeners into subscribers
- 3Royalties to rights holders
The free tier is the main funnel to Premium, which brings about nine in ten euros of revenue.
Who owns it
- Martin Lorentzon40.5%
- Daniel Ek28.8%
- Tencent8.1%
CEO: Alex Norström and Gustav Söderström (Co-CEOs)
Who it competes with
AApple MusicYYouTube MusicAAmazon MusicDDeezerSSoundCloudSSiriusXM
Key moments
- 2006Incorporated in Luxembourg
- 2018Lists on the NYSE through a direct listing
- 2019Buys podcast creators and studios
- 2021Announces the Spotify Audience Network
- 2022Buys Findaway and Sonantic
Sources
Every number on this page comes from Spotify's own reports.
Full profile
The rest of the story is in the app.
What Spotify tracks22 metrics
Monthly active users
Premium Subscribers
Ad-Supported MAUs
Results, quarter by quarterwith a chart
Revenue
Profit
Margin
Where the money comes from3 regions
United States
Luxembourg
Other countries
The full timeline16 moments
2023
2024
2025
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