Spotify started in Sweden in 2006 and launched to the public in 2008. It lets you stream music through an app or a browser. There are two tiers: a free version with audio ads between songs, and Premium at about $11 per month in the U.S. as of 2023[1], which kills the ads, adds offline downloads, and bumps audio quality. A Premium Family plan lets one paying adult cover up to six people in the household, each with their own login and playlists. Apple Music, Spotify's main competitor, doesn't offer a free tier at all[2]. Every Apple Music listener pays.
Sources
- Spotify raised its U.S. Premium Individual plan from $9.99 to $10.99/month. Data as of July 24, 2023. Source: CNBC. cnbc.com/2023/07/24/spotify-increases-prices-for-its-premium-subscription-plans.html
- Apple Music offers Individual, Family, and Student paid plans with no permanent free, ad-supported tier. Data as of August 2026. Source: Apple. apple.com/apple-music/
- iTunes Music Store launched with songs at 99 cents each (Apple press release, April 28, 2003); that flat 99-cent pricing held until Apple introduced tiered 69¢/99¢/$1.29 pricing effective April 2009 (Apple press release, January 6, 2009) — covering Spotify's 2008 launch year. Source: Apple Newsroom. apple.com/newsroom/2003/04/28Apple-Launches-the-iTunes-Music-Store/ · apple.com/newsroom/2009/01/06Changes-Coming-to-the-iTunes-Store/
A father pays for a Spotify Premium Family plan. His wife, his 14-year-old son, and his 11-year-old daughter all stream on their own phones. He listens to a podcast on his commute every day. Who is the customer, and who are the consumers?