Spotify Technology S.A. (SPOT)

Spotify Technology S.A. (commercial name "Spotify") is a Luxembourg public limited liability company that operates the world's most popular audio streaming subscription service. As of December 31, 2025, it had 751 million monthly active users and 290 million Premium Subscribers across 184 countries and territories. The company gives users on-demand access to over 100 million music tracks and 7 million podcast titles. In select markets, eligible Premium Subscribers also get monthly hours of access to a catalog of 500,000 audiobooks. It is also investing in other content such as video, and it is building a two-sided marketplace that gives creators analytics, tools and ways to monetize their work and connect with fans.

The business has two segments. The Premium segment offers unlimited online and offline streaming without commercial breaks, and in select markets Lossless audio, audiobook access and an optional Audiobooks+ add-on. Plans include Individual, Family, Duo and Student, plus a Basic plan and a U.S. Audiobook Access Tier, with prices adapted to each local market. Premium revenue comes from subscriptions sold directly to users and through partners, generally telecommunications companies, at negotiated per-subscriber rates. The Ad-Supported segment is free to users, with limited on-demand music access and unlimited podcast access, and it serves as the main funnel for new Premium Subscribers. It earns revenue from display, audio and video advertising sold through agencies, direct arrangements and automated channels, including the Spotify Ad Exchange, a self-serve platform and the Spotify Audience Network (SPAN).

Spotify serves consumers worldwide, with users spread across Europe (26% of MAUs), North America (16%), Latin America (21%) and the rest of the world (37%). Its audience streamed 211 billion hours of content in 2025. On the revenue side, it sells to subscribers, telecom partners, advertising agencies and large advertisers. It also serves podcasters, authors and other creators through tools such as Spotify for Creators and Spotify for Authors.

To stream content, Spotify licenses rights from third parties and pays royalties. It has agreements with Universal Music Group, Sony Music Entertainment, Warner Music Group and Merlin, as well as independent labels and aggregators. Rights from these agreements accounted for about 72% of record-label streams in 2025. For musical compositions, it works with music publishers, performing rights organizations such as ASCAP, BMI, GMR and SESAC, local collecting societies, and the U.S. Section 115 blanket compulsory license. It also licenses or produces podcasts and licenses audiobooks. Competitors include Apple Music, YouTube Music, Amazon Music, Deezer and SoundCloud in music. They also include internet, terrestrial and satellite radio providers, podcast and audiobook providers such as Audible, and large online advertising platforms. The company was incorporated in 2006 and has its registered office in Luxembourg and its principal operational office in Stockholm, Sweden.