Friday , December 4 2020

Spotify CEO Daniel Ek notes price increases as musicians want money

The head of the world’s largest streaming music service has indicated that the price he will charge you is about to rise.

Spotify’s Premium monthly subscription currently costs $ 11.99 in Australia and allows you to access almost any song you can think of within seconds for less than what you used to pay for one album on CD .

In early October the company increased the price of its Family plan subscription, which allows “family members living under one roof” to share a subscription among up to six different users.

The price increased from $ 17.99 to $ 18.99.

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On a earnings call with investors on Thursday, CEO Daniel Ek revealed that more price rises would follow soon, especially in “mature markets”.

“While it is still early days, initial results show that in markets where we have experienced higher prices, our users believe Spotify is still exceptional value and have shown a willingness to pay more for our service, ”said Mr Ek.

“So as a result, you will see us expand price increases further, especially in places where we are well placed against competition and our hourly value is high,” he added, TechCrunch.

Spotify recently passed 320 million monthly active users worldwide and first launched in Australia in 2012.

The company is currently facing backlash from musicians who believe Spotify should pay more for their work.

The US Musicians and Allied Workers Union is calling for greater transparency and better pay from the business.

They want rights holders to have a minimum price of one percent per stream and be paid directly for a stream, rather than compete with each other in the current and complex “pro rata” model, the Union argues that it disproportionately benefits already successful artists. .

“Many claim that such wages are not compatible with Spotify’s current economic system,” the Union wrote in a statement on its website.

“Our demand is for this model to be adapted so that artists can be paid fairly. If Spotify’s model can’t pay artists fairly, it shouldn’t. ”

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