Who Is The Owner Of Spotify? (Ownership Breakdown)

Spotify is everywhere. Whether you’re working, relaxing, or hitting the gym — chances are, you’re listening on the Spotify app. But here’s something you might not know:

Who owns Spotify?
Who is the founder of Spotify?
What country owns the Spotify company?

These are questions many users ask — and today, I’ll answer them all in one easy guide.

In this blog, I’ll break down the ownership of Spotify, from the original founders to the current major shareholders, including powerful names like Daniel Ek, Martin Lorentzon, Tencent, and Baillie Gifford.

Whether you’re curious about the Spotify company owner, its market value, or how much stake is worth, this post gives you the full picture — in simple words.

Who Owns Spotify?

Spotify is owned by a mix of its founders and some big investors. The two main people behind Spotify are Daniel Ek and Martin Lorentzon. They started the company together and still own a large part of it today.

Daniel Ek is the CEO and also the largest shareholder. He owns about 15.6% of the company and controls around 30.5% of the voting power. Martin Lorentzon, who helped found Spotify and is still on the board, owns about 10.9% of the shares and holds around 42.7% of the voting rights.

Besides the founders, there are several important institutional investors that own parts of Spotify too. For example, Tencent Music Entertainment owns roughly 8.4% of Spotify. Other big shareholders include Baillie Gifford & Co., which holds about 12%, Morgan Stanley with around 4.6%, and T. Rowe Price Associates, owning close to 4%.

Because Spotify is publicly traded on the New York Stock Exchange, individuals have the opportunity to purchase shares and become partial owners of the company. However, because most shares are held by founders and big investors, it’s hard for regular investors to get a large stake.

So, to sum it up: Spotify is mainly owned by its co-founders Daniel Ek and Martin Lorentzon, with important support from big companies like Tencent and Baillie Gifford.

Origin Story of Spotify

In 2006, Daniel Ek and Martin Lorentzon, two entrepreneurs from Sweden, established Spotify. At that time, music piracy was a big problem. People were using illegal platforms like Napster and Kazaa to download music for free, which hurt the music industry a lot.

Daniel Ek saw this problem and believed there was a better way. Instead of fighting piracy, he thought about creating a service that offered music easily and legally, so people wouldn’t need to turn to illegal sites. That idea led to the birth of Spotify.

Before starting Spotify, Daniel had already built an online advertising company called Advertigo, which he sold in 2006. When he came up with the idea for Spotify, he asked Martin Lorentzon, a co-founder of TradeDoubler, to join him as a partner and investor. Martin liked the idea and decided to help fund the new company.

Spotify was made available to the public in October 2008, after two years of development. It started as a peer-to-peer music platform but later switched to a server-based system as it grew.

From its inception, Spotify has expanded into the leading music streaming platform globally, offering millions of songs and podcasts, and boasting more than 600 million active users around the world.

Who Runs Spotify (Current Management)

Spotify is managed by a team of experienced leaders, including its founders and key executives. Here’s a simple breakdown of who runs the company today:

• Daniel Ek
  • CEO and Co-Founder
  • Also serves as Chairman of the Board
  • Leads the company’s vision and major decisions
• Martin Lorentzon
  • Co-Founder and Board Member
  • Provides strategic guidance and support
  • He resigned from his position as chairman in 2015 but continues to stay involved
• Chief Financial Officer (CFO)
  • Manages Spotify’s finances and budgeting
  • Oversees company investments and financial health
• Chief Product Officer
  • Leads development of Spotify’s app and features
  • Focuses on improving user experience and technology
• Chief Business Officer
  • Handles partnerships, advertising, and business growth
  • Works on expanding Spotify’s audience worldwide
• Other Key Executives
  • Oversee departments like Human Resources, Legal, Public Affairs, and more
  • Support daily operations and strategic planning

Together, this leadership team works to keep Spotify growing and innovating, making sure millions of users enjoy seamless music streaming every day.

Spotify Ownership by Shareholders

When we talk about who owns Spotify, it’s important to know that Spotify is a public company. This means anyone can buy shares of Spotify on the stock market and become a part-owner. But the biggest owners are still the founders and some large investors. Here’s how the ownership breaks down:

Major Individual Owners:

• Daniel Ek
  • Co-founder and CEO
  • Owns about 15.6% of Spotify’s shares
  • Holds roughly 30.5% of the voting power
• Martin Lorentzon
  • Co-founder and Board Member
  • Owns around 10.9% of shares
  • Controls about 42.7% of the voting power

Top Institutional Shareholders:

• Baillie Gifford & Co.
  • Holds about 12% of Spotify’s shares
  • One of the largest investment firms owning Spotify stock
• Tencent Music Entertainment
  • Owns approximately 8.4% of Spotify
  • A big player in the music and tech industry
• Morgan Stanley
  • Owns around 4.6% of the company
  • Provides investment and financial services
• T. Rowe Price Associates Inc.
  • Owns about 4% of Spotify shares
  • Another major investment firm

What This Means

Because Spotify is public, anyone can buy smaller pieces of the company through the stock market. But even with that, the founders still hold the largest share of voting power, meaning they have the most control over company decisions.

Spotify Revenue

Spotify is the biggest name when it comes to music streaming, but how much money does it actually make?

Spotify uses a freemium model. This means anyone can listen to music for free but with ads playing between songs. If you want to skip the ads, you pay for a premium subscription. This helps Spotify earn money while keeping millions of users happy.

Key Revenue Facts:

• Spotify has more than 220 million paid subscribers who pay a monthly fee to enjoy music without ads.
• In 2022, Spotify made around €11.72 billion in revenue.
• Even though the revenue is growing every year (about 21% growth), Spotify has not made a full profit yet. In 2022, they reported a loss of about €236 million.
• Spotify continues to invest in expanding its service with podcasts, exclusive content, and new features to attract more users and advertisers.

What This Means

Spotify is leading in users and revenue in the music streaming world, but the company is still working on becoming fully profitable. The focus is on growth and keeping listeners engaged worldwide.

If you want to explore other music streaming apps, you can check out the comparison category where I have shared complete details about other platforms and compared them with Spotify.