Spotify is a
proprietary peer-to-peer music streaming service with desktop applications available for
Linux,
Microsoft Windows and
Mac OS X.
Developed by Swedish startup "Spotify AB", the software allows unlimited streaming of selected music from a multitude of major and independent
record labels including
Sony,
EMI,
Warner Music Group and
Universal with virtually no
buffering delay.
[2][3] Music can also be imported from either iTunes
[4] or directly from local files.
[5]
An ad-supported version of the software is free to download in
Sweden,
Spain,
Norway,
Finland,
France, the
Netherlands and the
United Kingdom.
[6][7]. For a monthly fee, users can upgrade to a "Premium" account, which offers higher
bitrate streams, offline access to music and use of Spotify on
mobile devices running
iOS,
Android or
Symbian.
[8] Currently only consumers with a Paypal account or a credit card issued in one of the launch countries can activate a Premium account. A "Day Pass" was available, which gave unlimited advertising-free listening for 24 hours; this option was removed when Spotify "Unlimited" was introduced in May 2010.
Music can be browsed by artist, album, record label or playlist as well as by direct searches, and a link allows the listener to purchase selected material via partner retailers.
[9] Launched in October 2008, Spotify has approximately seven million users as of May 19th, 2010; about 250,000 of these are paying members.
[10]
Spotify has been developed since 2006 by a team at Spotify AB,
Stockholm,
Sweden. The company Spotify was founded by
Daniel Ek, former CTO of
Stardoll, and Martin Lorentzon, co-founder of
TradeDoubler, in Stockholm. The headquarters are located in London and research and development is located in Stockholm.
Spotify was launched for public access on 7 October 2008. While free accounts still remained available by invitation only in order to manage the growth rate of the service, the launch meant that paid subscriptions were opened to everyone. At the same time, Spotify also announced licensing deals with many major music labels.
[11] Spotify reported a USD 4.4 million loss for the year of 2008.
[12].
The first step towards opening free accounts for public without invitation was taken on 10 February 2009 when Spotify opened for free registration in the
UK.
[13]
Due to a surge in registrations following the release of the Spotify mobile service, Spotify closed its open registrations in the UK on 11 September 2009. The free service is now invitation-only,
[14] although it was possible to bypass the invitation system for several months by opening the registration page directly. This loophole has now been closed and the registration page requires an invitation code.
[15] Subscriptions may still be purchased without an invitation.
On 4 March 2009 Spotify announced that there had been a security flaw in the Spotify service, by which private account information (including email addresses and
salted password hashes) of members registered prior to 19 December 2008 were potentially exposed.
[16][17][18][19]
On 28 January 2010
Symantec Anti-virus marked Spotify as a
Trojan horse, disabling the software across millions of computers.
[20][21]
Spotify is currently only available in
Sweden,
Spain,
Norway,
Finland (including the
Åland Islands[29]),
France, the
Netherlands and the
United Kingdom. In Austria, Belgium, Estonia, Germany, Greece, Italy, Poland, Portugal, Romania and Switzerland the Premium service was offered until July 2009, but never the free version. Currently only customers with credit cards issued in one of the above-mentioned launch countries can buy a Premium account.
Spotify Founder, Daniel Ek, expressed a desire to launch Spotify in the US before the end of 2009, although Spotify has yet to be launched there.
[30]