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How does Spotify make money?
Spotify makes money from premium subscriptions from its users. While there is a free version of Spotify, it is limited, whereas their premium offering allows users to play any music Spotify has the rights to for however long.
Spotify has an incredibly large catalog of music, and many users want to be able to go through it without restrictions. They do this by paying a monthly or annual fee for a subscription to Spotify.
Spotify's free model offers a more basic, limited, and ultimately ad-supported version of the music streaming service. So, despite its free model, Spotify still generates revenue through advertising.
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