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Spotify will increase its subscription prices in dozens of countries around the world this summer, according to people familiar with the question, because the head of streaming music favors profitability in the middle of a flamboyant stock market.
The group planned to increase prices by the equivalent of € 1 on individual subscriptions in European and Latin America countries in June, these people said.
Spotify would not increase prices in the United States, its largest market, this summer, people said. The streaming service increased its monthly price in the country in July 2024. Spotify refused to comment.
The leaders of the music industry have long put pressure on Spotify, Apple Music and other Streaming platforms To increase their prices, saying that they have increased more slowly than inflation and service is cheap compared to video streaming subscriptions such as Netflix. Even after recent price increases, a Spotify subscription in the United States costs $ 11.99 per month, compared to $ 9.99 per month when the group was launched in the country 14 years ago.
Spotify has already quietly started to increase prices in some countries, such as the Netherlands and Luxembourg in recent weeks. The push would intensify considerably this summer, said a person familiar with the issue.
This decision is a decade of rapid expansion in the music sector is starting to slow down, with global income growth in the reduction sector in half last year, according to the IFPI sales group.
While large music companies are looking for a new growth stage, they praised “Streaming 2.0”: the next phase of musical streaming, which would include more premium versions of their services.
Streaming groups, including Spotify, planned to charge additional funds for early access to music, according to several people familiar with discussions, while the music industry seeks to enjoy the most passionate fans of beloved artists.
They also planned to provide early access to concert tickets to those who pay for the super premium level, these people said.
Spotify is considering a level of “super premium” which would cost an additional $ 6, in addition to the costs of $ 11 per month in the United States, the FT A reported.
These premium subscriptions would be different on the main platforms, according to several leaders involved in these discussions. Apple, Amazon and YouTube also prepare premium versions of their music streaming services.
However, these people warned that the plans could change.
The CEO of the Universal Music Group, Lucian Grainge, presented the term “Streaming 2.0” during a day in the capital markets in September. “The next streaming phase, which I like to call Streaming 2.0 … We think that the value will increase enormously,” Section, an investor room at the Abbey Road Studio, told London.
Observers have asked for how consumers will react to pay more, after having access to all world music for about $ 10 per month in the last decade.
“Do people want something new?” said Midia analyst Mark Mulligan. “It's almost as if you needed the super premium stick element. And the stick element is: if you want to hear the music first, you need super premium.”
The Spotify stock has more than doubled in the past year, because the group has achieved both the benefits and growth of subscribers. The company is expected to publish results on Tuesday.
