Win10 / Win7 / Win8
It achieves this essentially be capturing the audio and encoding it to any of a number of formats you can select (MP3 etc.). You can also set the bitrate and other things that will determine output quality. Typically, Spotify music is DRM protected and therefore locked to certain apps and hardware devices, which can be an annoyance for some.
NOTE: It is important to remember that even if you are a paying Spotify subscriber that artists are compensated when you stream their music tracks. That means that if you use this or other apps to capture the audio and create files unlinked to your Spotify app then the artists, songwriters and others will not be compensated when you play it anymore (unless you play it in Spotify). So just remember that even though you are a paying customer, your favorite artists depend on your streams to be compensated.
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1License and operating system information is based on latest version of the software.