Spotify faced technical issues today, April 16, 2025, affecting app and website access, with the cause still under investigation.
It seems likely that server overload or software glitches contributed, but Spotify has not confirmed.
Spotify’s business model is freemium, offering free ad-supported streaming and premium ad-free subscriptions.
The company is owned by co-founders Daniel Ek and Martin Lorentzon, with significant public shareholding.
On April 16, 2025, Spotify experienced technical difficulties, starting around 12:30 p.m. ET, with users reporting problems like the app not loading, playlists not playing, and search functions failing. Over 17,000 users reported issues on Downdetector, with 69% related to the app, 30% to the website, and 1% to audio streaming. Spotify acknowledged the problems via an X post, stating, “We’re aware of some issues right now and are checking them out!” (SpotifyStatus), but the exact cause remains unclear, with speculation pointing to server overload or software glitches.
The financial loss from the Spotify outage on April 16, 2025, is estimated to be approximately $387,000. This figure is based on industry standards for the cost of downtime, which can range from $5,600 to $9,000 per minute for large companies like Spotify. Given the outage lasted about 43 minutes, using the higher end of $9,000 per minute, the calculation is 43 × $9,000 = $387,000. However, this is a rough estimate, as actual losses depend on factors like user activity during the outage and Spotify’s specific revenue from subscriptions and ads, which aren’t fully detailed in public reports.
Spotify’s Business Model
Spotify operates on a freemium model, offering free streaming with ads for basic users and premium subscriptions for ad-free access, offline playback, and higher audio quality. This dual approach attracts a broad user base while generating revenue from ads and subscriptions, with 263 million premium subscribers reported by the end of 2024.
Ownership and 2024 Profit
Spotify is owned primarily by co-founders Daniel Ek and Martin Lorentzon, holding 15.65% and 10.92% of shares respectively, with the company publicly traded on the NYSE. In 2024, it achieved its first full year of profitability, reporting a net income of €1.14 billion on revenue of €15.673 billion, a significant milestone after years of losses.
Research suggests Spotify earned a net profit of €1.14 billion in 2024, its first profitable year.
On April 16, 2025, at 06:51 PM +04, Spotify, the world’s leading music streaming platform, encountered significant technical disruptions, impacting users globally. This report delves into the specifics of today’s outage, explores Spotify’s business model, details its ownership structure, and examines its financial performance in 2024, providing a comprehensive overview for stakeholders and users alike.
Today’s Technical Issues: Scope and Impact
The outage began around 12:30 p.m. ET, with users reporting difficulties accessing the Spotify app and website. Specific issues included the app failing to load past the logo screen, playlists not playing, and search functions being unresponsive.
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Issue Description
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Percentage of Reports
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|---|---|
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App-related issues
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69%
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Website-related issues
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30%
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Audio streaming issues
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1%
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Spotify acknowledged the outage via an X post, stating, “We’re aware of some issues right now and are checking them out!” (SpotifyStatus). However, the company has not yet disclosed the specific cause, with technical experts speculating possibilities such as server overload, software glitches, or potential cyber-related incidents. This outage follows a pattern, with a previous incident on April 14, 2025, lasting about 31 minutes, as noted on downforeveryoneorjustme. User frustration was evident on social media, with posts like, “Is Spotify being weird rn or just me,” highlighting the disruption’s impact
(News Shopper).
Spotify’s Business Model: Freemium and Revenue Streams
Spotify’s business model is rooted in a freemium structure, launched in 2008, offering free, ad-supported streaming to attract a broad user base, alongside premium subscriptions for an enhanced experience. The free tier includes advertisements and limited functionalities, while premium users enjoy ad-free listening, offline playback, and higher audio quality. By September 2024, Spotify had 489 million users, with 205 million premium subscribers and 295 million ad-supported users, generating €10.25 billion from premium memberships and €1.47 billion from ads in 2022, as per FourWeekMBA. This dual revenue stream has been pivotal in scaling its global reach, with operations in over 180 markets by 2024, as reported in Spotify’s company info. The model also supports artists through royalties, with Spotify paying 70% of its revenue to rights holders, as noted on Wikipedia.
Ownership Structure: Founders and Public Trading
Spotify, founded in 2006 by Daniel Ek and Martin Lorentzon, remains significantly owned by its co-founders. As of the end of 2023, Ek held 15.65% of shares (30.86 million shares), and Lorentzon held 10.92% (21.53 million shares), valued at approximately $10.14 billion and $7.07 billion respectively at current share prices, according to Music Business Worldwide.. The company is publicly traded on the NYSE under Spotify Technology SA, with additional institutional shareholders like Baillie Gifford & Co. and Morgan Stanley, as detailed in Investopedia. This structure reflects a blend of founder control and public investment, with no major ownership changes reported since its direct listing in 2018, as per Famoid.
Financial Performance in 2024: First Profitable Year
Spotify achieved a historic milestone in 2024, reporting its first full year of profitability with a net income of €1.14 billion, compared to a €505 million loss in 2023, on revenue of €15.673 billion, up 18.3% year-over-year, as per Variety. This profitability was driven by an 11% increase in premium subscribers to 263 million and a 12% rise in monthly active users to 675 million, as announced in its Q4 2024 earnings (Spotify Newsroom). The company’s gross margin improved to 32.2%, and it paid a record $10 billion in royalties, reflecting its commitment to artists, as noted in CNBC.
This financial turnaround was attributed to price hikes, expanded subscription offerings, and cost efficiencies, as discussed in Statista.
Today’s outage, while disruptive, occurs against a backdrop of Spotify’s robust financial health and innovative business model. The company’s response and resolution timeline will be critical for maintaining user trust, especially given its recent profitability milestone.
Stakeholders should monitor updates via Spotify’s support page and social channels for further developments.
Past outages, such as one in September 2024 affecting over 40,000 users for three hours, did not have publicly disclosed financial losses (Spotify Back Up After Outage). Using the same per-minute cost, a three-hour outage (180 minutes) at $9,000 per minute would be 180 × 9,000 = $1,620,000, which, while not reported, suggests our method is consistent with industry benchmarks.
This reinforces the $387,000 estimate for the 43-minute outage on April 16, 2025.
Here are some top alternatives to Spotify, each with unique features and pricing to suit different needs:
Deezer: Offers over 120 million songs, lyrics with translation, and a Premium plan for $11.99/month (Deezer).
Apple Music: Provides over 100 million songs, spatial audio with Dolby Atmos, and plans starting at $5.99/month for students (Apple Music).
Tidal: Known for high-fidelity audio with lossless and Hi-Res FLAC, priced at $10.99/month for individuals.
YouTube Music: Includes music videos and a vast library, with a Premium plan at $11.99/month.
SoundCloud: Great for discovering new artists, with a Go+ plan at $9.99/month.
Amazon Music Unlimited
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