Spotify is officially raising its Premium subscription rates in the US come July, following reports of the move in April. The platform is increasing its Individual plan from $11 to $12 monthly and its Duo plan from $15 to $17 monthly — the same jump as last year’s $1 and $2 price hikes, respectively. However, its Family plan is going up by a whopping $3, increasing from $17 to $20 monthly. The only subscribers getting a break are students, who will continue to pay $6 monthly.
Spotify announced the price hikes less than a year after its previous one last July. Before that, Spotify hadn’t raised its fees since launching a decade and a half ago. I guess it was too optimistic to hope the next increase would also take that long, especially with Spotify’s continued focus (and money dump) on audiobooks.
Premium subscribers should receive an email from Spotify in the next month detailing the price hike and providing a link to cancel their plan if they would prefer to do so. Users currently on a trial period for Spotify will get one month at $11 after it ends before being moved up to a $12 monthly fee.
Then why does tidal for the same price as spotify with way less users pay four times as much to the artists than spotify? Spotify has the largest market share and now they are trying to milk the cow as much as they can because people are too lazy to switch. Most people don’t even know that you can transfer playlists. Same with Netflix (although they at least have more exclusive content).
I wonder why too. Spotify takes a 30% cut, but even if Tidal takes 0% cuts, how come it can pays 4x as much to artists? There must be more to the math to make it check out.
Royalties come out of profits.
Profits = revenue - costs.
Inflate costs (pay 3rd parties you also own) and pay less royalties.
At least that’s how the movie business works.