Spotify is considered such a success from entrepreneurship that British Prime Minister David Cameron used Spotify as an example to describe how big ideas flourish in free societies at the Davos summit in 2011. Furthermore, even Facebook’s CEO Mark Zuckerberg has openly declared: “Spotify is so good”.
Finally, the award-winning music service that’s taken Europe by storm has now come to U.S. shores
Made in Sweden
Home of musical powerhouse ABBA, Sweden houses the headquarters of Spotify. Launched with €12 million in venture capital (about $17 million) from Creandum and Northzone, both based in Stockholm, Spotify was founded in 2006 by Daniel Ek and Martin Lorentzon.
The name Spotify is a hybrid between spot and identify. The company’s goal is to help people listen to whatever music they want, whenever they want, wherever they want.
The growth of Spoitfy has been fueled by investors such as Wellington Partners, a British venture fund, which contributed €7 million, and Li Ka-shing, a Hong Kong magnate and the world’s 11th-richest man, who sank in €20 million.
According to the their website, Spotify has headquarters in the UK and offices in Stockholm, Paris, Oslo, Madrid, Amsterdam and New York. As of 07/31/11, Spotify has over 13 millions tracks, about 10 million registered users and 1 million paying users.
According to the company, Spotify is an online music service offering users the ability to stream more than 13 million tracks on demand using Spotify’s unique technology.
Spotify is marketed both as a premium monthly subscription service and a version which is free for consumers to use, and supported by advertising. The software is available for download on both computers and smartphones.
Launch in the U.S.
Spotify brought its music streaming service for the first time to the United States on July 14, 2011. Available by invitation only, Spotify offered made a smart move by limiting the access to the service to a select few.
The company was launched in partnership with some of the biggest and most pioneering brands in the world, Coca-Cola and Sprite, Chevrolet, Motorola, Reebok, Sonos and The Daily. However, the partner that brought in the most online buzz was Klout, whichi offered a limited number of early-access Spotify account invitations to dole out to its users.
The campaign spread through social media because Klout users could get access to a free month of Spotify Premium (a $4.99 value) by successfully making 5 people register with Klout.
Still, despite the successful launch of Spotify, it has not been without hiccups. The Atlantic Wire reported that Packetvideo filed court papers in the US and in the Netherlands on July 28th, exactly two weeks after their debut. Packetvideo alleges that Spotify’s service violates two intellectual property patents they have covering streaming music over the internet
Sign up for Spotify at http://spotitfy.com.