Spotify’s success rests on its freemium business model, which allows it to increase its reach and also generate revenue through subscriptions. Net Worth of Spotify in 2023 Spotify Net Worth But Spotify started losing out on customers, and by 2012 March, they once again reverted to unlimited music like before. The offer was up for grabs for a year, and by the beginning of 2012, the free trial got modified, and users were limited to 10 hours worth of free streaming and just five-song replays per month. As a launch offer, it supported a six-month free ad-supported trial period, where users could listen to unlimited music. Spotify services were introduced in the US in July 2011. So, Spotify hit it off with their listen to free songs by allowing streaming of sponsored ads, and a very competitive subscription pricing. The only other competitor that had something similar was Apple at that time. When they first launched, they offered users over 50 million songs, with convenient features including offline streaming and saving songs in playlists. The Spotify application was officially launched on 7 October 2008. In an anecdote, Ek said that there was some confusion about the name, but later the two decided that “spot” and “identify” could be combined to name it Spotify. The idea of a subscription-based music service struck Daniel Ek (former CTO of Stardoll) and Martin Lorentzon (co-founder of TradeDoubler) in 2006 the two got together to launch Spotify. Plus, Spotify capitalized on its huge catalog of music and a very intuitive and user-friendly user interface. With this simple tweak, Spotify found more takers than Apple’s iTunes, as the latter would only allow subscribers to listen to music.
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