Spotify Technology SA (SPOT)

The company uses a freemium model. Its ad-supported tier lets listeners use the platform at no upfront cost, while the Premium tier provides paid subscribers with benefits such as on-demand playback, offline listening and an ad-free music experience. Subscription revenue is the core of Spotify’s business and accounts for most of its gross profit, while advertising revenue comes from free users and podcast-related ad inventory.

Spotify’s scale is a key part of its market position. With hundreds of millions of monthly active users worldwide and a large base of paying subscribers, the company has significant bargaining relevance in the recorded music industry and a valuable data set for improving discovery and engagement. It also serves creators through tools for distribution, analytics, promotion and monetisation.

Beyond music, Spotify continues to build a broader audio ecosystem. Podcasts are integrated into the same app as music, and the company has expanded into audiobooks in selected markets. This strategy is designed to increase listening time, diversify content formats and strengthen Spotify’s role as a daily audio destination.