Spotify might soon be raising its subscription prices
Daniel Ek, Spotify’s CEO, said recently that the platform is considering raising its subscription prices in order to compete with the market. Read below to understand what that means for your future as a Spotify customer.
The move could mean more royalties for artists in the music streaming platform.
For many years, the only quick solution to partially remedy how little most musicians get for royalties from streaming services has been clear: raising subscription prices. Big streaming services such as Spotify and Apple Music were responsible for reviving the music industry in the past several years.
An industry that had its revenue reduced significantly due to plummeting album sales and illegal downloading. However, the American subscription price was set at less than $10 a month since its creation more than a decade ago to mirror the cost of video-rental subscriptions.
For some reason, the thought of increasing subscription prices only came to light in the last few weeks. As a matter of fact, the ongoing streaming wars battling for consumers’ attention became so grueling that most streaming platforms were competing for the lowest price.
Free models, family plans, student plans, bundle services – all ideal for the consumer’s pocket, but less revenue for musicians and songwriters. So now, with the current state of the economy, and maybe for that reason alone, companies are reviewing its prices.
For Milana Lewis, the CEO of Stem, the whole ordeal makes no sense. She states that the price of everything else on the planet is increasing. Yet, companies keep looking for ways to make subscription plans cheaper. And surveys have shown that people are willing to pay up if necessary.
Many platforms are raising subscription prices
It seems as though that situation is finally changing. Last Monday, Apple announced it was raising subscription prices on most of its services, including Apple TV+ and Apple Music. The latter will now cost $10.99 a month per individual. The family plan will cost $16.99 a month.
YouTube is also raising subscription prices on its Premium Family Plan in the U.S. Now, it’ll cost $22.99 a month, a $5 increase from the previous $17.99 charge. Deezer, a smaller music streaming platform in the U.S., has also opted for raising subscription prices internationally.
Last Tuesday, during Spotify’s quarterly earnings call, co-founder Daniel Ek revealed that the company is also considering a raise in prices. He stated that the fact that Spotify’s main competitors are raising prices means good news for the company. He also noted that Spotify has increased their subscription prices over 40 times since its beginning.
Ek also said that raising subscription prices in the U.S. is something they would like to do in the near future. Especially since it’s the biggest music market in the world by far. However, it’s an issue they still need to discuss with their label partners.
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Apple is raising prices on all its subscription services
Apple recently announced that it’s raising prices across all of its services. If you’re an Apple Music or Apple TV+ subscriber, follow the link below to learn what that means for you.
About the author / Aline Barbosa
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