“Financial” Aspects of Spotify Streaming Model

Abstract

The aim of this paper is to analyze the business model and financial results of the Spotify music streaming platform. The digitalization of production processes has directly affected the development of new media industries. The old media industries developed in the model of mass media and limited media markets. New media industries are associated with technological progress and the digitalization of production processes. The digitalization and convergence of production and distribution processes has directly affected the complete paradigm shift in the development of new media industries. The music industry was among the first to enter the process of transformation. The production and distribution of physical sound carriers has been replaced by streaming music platforms. The purchase of physical sound carriers in "brick and mortar" stores has been replaced by subscriptions on the streaming platform. Spotify is the largest global streaming music platform. It generates the highest revenue and has the largest number of subscribers. The strength and impact of the Spotify platform on the global market is evidenced by the emergence of the term “spotification”, which is used for all similar business development models.