While Spotify has been reportedly valued at $8.5 billion, its founder and chief executive says the company could have ‘died’ a few years ago. Speaking during a talk at the Slush technology conference in Helsinki on Wednesday, Daniel Ek said the company didn’t realize the significance of mobile early on.
Before 2013, Spotify only had a mobile product that required people to pay a subscription for. On desktop, the music streaming service had a freemium model – with both a free and premium tier. In the short term, Spotify benefited with people paying for the mobile product, but it was missing out on further growth.