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There were 146,305 subscribers as of January 30, 2020. The company has about 50 employees and is currently headquartered in Stockholm, Sweden. Spotify has the backing of Swedish companies like 4 out of 7 digital AB and SF studios and Spotify’s owners, Sprint Nextel and Telia Sonera, but it has struggled to grow its business. With its advertising based revenue model, Spotify was one of the first to be sued by three record labels, including Warner Music Group, which filed suit in a federal court in California in June 2012. Spotify continues to invest in ecommerce, especially with the launch of its app store, where users can buy additional apps.
In March 2009, Spotify began offering music downloads in the United Kingdom, France, and Spain. Users could purchase tracks from Spotify, which partnered with 7digital to incorporate the feature. The ability to purchase and download music tracks via the app was removed on 4 January 2013.[158]
Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the number of artist streams as a proportion of total songs streamed. It distributes approximately 70% of its total revenue to rights holders (often record labels), who then pay artists based on individual agreements.
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