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However, the incorporation of digital rights management (DRM) protection diverges from the OMM and competitors such as iTunes Store and Amazon Music that have dropped DRM. Spotify offers an unlimited subscription package, close to the Open Music Model (OMM)-estimated economic equilibrium-for the recording industry. Rights holders received an average per-play payout between $.006 and $.0084. 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 company pays 70% of its total revenue to rights holders. Spotify gets its content from major record labels as well as independent artists, and pays copyright holders royalties for streamed music. In December 2013, the company launched a new website, "Spotify for Artists", that explained its business model and revenue data. Spotify generates revenues by selling premium streaming subscriptions to users and advertising placements to third parties. Spotify operates under a freemium business model (basic services are free, while additional features are offered via paid subscriptions).

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In 2017, as part of its efforts to renegotiate license deals for an interest in going public, Spotify announced that artists would be able to make albums temporarily exclusive to paid subscriptions if they are part of Universal Music Group or the Merlin Network. Spotify has faced criticism from artists and producers including Taylor Swift and Thom Yorke, who have argued that it does not fairly compensate musicians. It distributes approximately 70% of total revenue to rights holders, who then pay artists based on their individual agreements.

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Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the number of artists' streams as a proportion of total songs streamed. As of February 2019, it had 207 million monthly active users, including 96 million paying subscribers.

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Spotify is available in most of Europe and the Americas, Australia, New Zealand, and parts of Africa and Asia, and on most modern devices, including Windows, macOS, and Linux computers, and iOS, Windows Phone, and Android smartphones and tablets. Users can browse by parameters such as artist, album, or genre, and can create, edit, and share playlists. Launched by Spotify AB on 7 October 2008, Spotify provides access to over forty million tracks. As a freemium service, basic features are free with advertisements or automatic music videos, while additional features, such as improved streaming quality, are offered via paid subscriptions. Spotify ( / ˈ s p ɒ t ɪ f aɪ/) is a Swedish audio streaming platform that provides DRM-protected music and podcasts from record labels and media companies.