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Introduction

Music subscription services might need to face up to the prospect of price rises sooner than they think.

Highlights

  • As a pure-play music streamer, Spotify has more to gain from a price increase, because Apple Music is there to support Apple’s core hardware business, while Google Music Play and Amazon Music are bit players in their respective companies.

Features and Benefits

  • Examines the issue of pricing for music subscription services in the context of slowing revenue.
  • Although Spotify is experimenting with pricing in Northern European markets, wider increases might need to be introduced to maintain revenue growth.

Key questions answered

  • Where has Spotify experimented with subscription pricing?
  • Why should services increase prices when the music subscription sector is registering healthy growth?

Table of contents

Ovum view

  • Summary
  • Assessing the pros and cons of a subscription price rise
  • Positive change at a static price
  • Maintaining the growth curve

Appendix

  • Author