Daniel Ek and Martin Lorentzon co-founded Spotify in Sweden in 2006.
The company was established in Stockholm as a legal music-streaming business. Spotify aimed to offer convenient access to a large music catalog while providing a licensed alternative to unauthorized file sharing, which had challenged the music industry in the early 2000s.
Spotify launched publicly in several European markets in 2008 and used a combination of advertising-supported listening and paid subscriptions. Its service later expanded into podcasts, audiobooks, playlists, and personalized recommendations.
A common mix-up is treating Spotify as an American company because it became widely used in the United States. Its founders and original corporate base are Swedish. Spotify is also distinct from Pandora, Deezer, and SoundCloud, which developed different streaming models and company histories.