Spotify excludes imminent price increases in US market

Even if audio streaming pioneers support Wall Street in other ways to withdraw more money from users, Spotify will take “very cautious” steps regarding price increases in the United States, its CEO said. Daniel Ek said on Monday.

After Spotify’s first investor presentation since it was released three years ago, Ek told the Financial Times while the company was rolling out something more expensive. subscription With this year’s US options, which feature better sound quality, a wider price increase was not imminent.

In the world’s largest music market, the company’s $ 10 monthly subscription costs Spotify Added millions of podcasts and songs to the platform.

“There is definitely [parts] It’s part of the United States that’s starting to mature, but most of the United States is discovering streaming, “says Ek. “That’s why I play so carefully in the United States.”

The· Music industry Spotify has long been enthusiastic about raising prices. Steve Cooper, CEO of Warner Music, told FT that music subscriptions are “low-priced,” noting Netflix, a video streaming service that raised prices several times in the United States, most recently in October.

“When thinking about trading [music streaming platforms] It provides people with access to railroad tracks of 50 or 60 meters. It’s incredible, “says Cooper. “Ultimately, they have to raise the price.”

Ek is trying to convince investors that a company founded 10 and a half years ago will eventually stop losses on a music service whose license agreement with a record label consumes two-thirds of its revenue. ..

Spotify announces launch of high-definition CD-quality premium subscription service, doubling the number of countries available on Investor Day, and rolling out dozens of new podcast shows from Barack and others Did. Obama and Ava Duvanay.

How Ek will release Spotify in 85 new regions in Africa, Asia and Latin America, including Ghana, Sri Lanka and Pakistan, affecting its average revenue per user, the indicator Wall Street is concerned about. Did not comment on what to do. Street.

Arpu is steadily declining as it expands to countries such as India, which offers promotional discounts and charges subscribers low prices. Arpu fell 8% in the fourth quarter from a year ago to just € 4.26.

Podcasts are a penalized business if the company can create another podcast subscription or increase podcast listening sufficiently on the main platform to encourage music rights owners to accept a lower revenue share. You can provide freedom from the model.

According to people familiar with this issue, Spotify has done extensive research on the economics of podcast subscriptions. These people added that the company would probably consider charging subscribers about $ 3.99 a month for access to the podcast library.

“We continue to experiment and find out what consumers want,” Ek told FT. “I do not think [a podcast subscription] It will be excluded in the future. “

Spotify’s share price rose more than 5% on Monday after investors first supported product and content launches. Since listing on the New York Stock Exchange in 2016, stocks have more than doubled. Investors have accepted the company’s declaration that it will become Netflix for audio by spending about $ 1 billion on podcasting.

Spotify excludes imminent price increases in US market

Source link Spotify excludes imminent price increases in US market

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