Spotify Blog: Business Model, Competitive Strategy, and Digital Growth
Spotify: Business Model, Competitive Strategy, and Digital Growth Spotify, established in 2008, transformed the music industry to give users an extensive and diverse collection of songs in one, from genres to languages. Spotify emerged as the world's biggest digital music streaming service, transforming how people listen to, discover, and share music (Mjos, 2022). In comparison to buying an album or a single song in the traditional way, Spotify gives users an uninterrupted experience where they can listen to millions of songs on demand. With time, the firm has been continually innovating through algorithm playlists, exclusive artist partnerships, and social features (Spotify, 2024). As of 2025, Spotify grew exponentially to 675 million active users all over the world. Out of these, 263 million have subscribed to the paid membership, which comes with ad-free listening, enhanced sound quality, and offline listening (Statista, 2025). This greatly impacted the coffers of Spotify, leadi...