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In December 2013, the company launched a new website, "Spotify for Artists", that explained its business model and revenue data.

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In 2011, it reported a near US$60 million net loss from revenue of $244 million, while it was expected to generate a net loss of $40 million from revenue of $500 million in 2012.

In May 2016, Spotify announced "Sponsored Playlists", a monetisation opportunity in which brands are able to specify the audiences they have in mind, with Spotify matching the marketer with suitable music in a playlist.

BBC Music Week editor Tim Ingham wrote: "Unlike buying a CD or download, streaming is not a one-off payment.

Hundreds of millions of streams of tracks are happening each and every day, which quickly multiplies the potential revenues on offer – and is a constant long-term source of income for artists." In March 2014, Spotify introduced a new, discounted Premium subscription tier for active students.

It distributes approximately 70% of total revenue to rights holders, who then pay artists based on their individual agreements.

Spotify has faced criticism from artists and producers including Taylor Swift and Thom Yorke, who argued that it does not fairly compensate musicians.The company pays 70% of its total revenue to rights holders.Spotify for Artists states that the company does not have a fixed per-play rate, instead considers factors such as the user's home country and the individual artist's royalty rate.The updates we are making are designed to make it clearer how we collect, store and use your personal data, as well as your rights relating to your data.In our updated policies, you'll find information on: Along with our policy updates, we are also making it easier for you to be in charge of what communication you receive and how you hear from us.In April 2017, as part of its efforts to renegotiate license deals for an interest in going public, Spotify announced that artists will be able to make albums temporarily exclusive to the Premium service if they are part of Universal Music Group and Merlin Network.

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