![]() That’s nearly $100 a year more: not enormous, but perceptible – and that’s if you subscribe to only five services. ![]() With some (more!) rough calculations, based on US pricing, a person who subscribed to the cheapest options from Netflix, Disney+, YouTube Premium, Spotify, and Xbox Game Pass a year ago would have paid $48.95 per month ($587.40 per year) in total, but they would be paying $56.95 per month now. This streaming-industry-wide move to increase prices is a part of the reason that Spotify’s price increase has not caused that much in the way of a negative reaction from consumers, but it gives us a moment to reflect on how small increases across the board could have a bigger impact. While this is a purely finger-in-the-air figure, it’s easy to see how a small increase in subscriptions costs could nudge the company towards recording regular profits, and please impatient shareholders. (Warning: some very rough maths follows.) With 210 million premium subscribers, and a hypothetical ARPU of €5 per month, Spotify could generate €1.05 billion in monthly revenue from these paying users. Spotify also announced in Q1 of this year that it was growing faster than expected, although still reported an operating loss of €156m for the quarter. These price rises will lift that figure somewhat closer to the €5 mark. So what will that increased revenue look like? Spotify’s ARPU – its average revenue per paying user – was reported as €4.32 in its Q1 2023 report. Artists and songwriters, many of whom have long campaigned for increased or changed royalty systems, are perhaps understandably not falling over themselves to praise Spotify – but increased revenue should mean some increase to the payouts to them, too. Spotify’s share price dipped by 4.6%, although in general shareholders are presumably happy with an increase to the company’s income stream. ![]() So what was the fallout from the Spotify subscription price rise announcement? Well, judging by social media reactions, there was no enormous revolt by subscribers, at least. Spotify has waited a long time to raise prices from the fabled $9.99-per-month mark, in the US, at least. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |