Spotify Monthly Premium Price Hike
Spotify competitors have been increasing their prices. Following similar increases, Spotify is increasing the price of its streaming subscription in the US. From $9.99, it’s now $10.99, according to Wall Street Journal.
It is unclear when the price increase will take effect. But it is expected to be announced next week.
The $9.99 price has been the same since 2011.
Its CEO, Daniel Ek, previously said that the company is considering increasing its prices in the US after its rivals have done the same.
Increasing the subscription cost in the US is one of the things that the company is interested in.
Apple Music increased its subscription price last fall from $9.99 to $10.99 a month for individual plans. Its family plan increased to two dollars.
Amazon Music Unlimited did the same. For non-Prime members, the monthly price will now be $10.99.
YouTube also increased its YouTube Music Premium to $10.99/month. YouTube Red accounts will also be affected. But Google will not raise the price immediately. Instead, it gives its subscribers at least three months before the price increase will affect their plans.
The Rising Costs
The costs associated with running a music streaming service can increase over time. These costs include licensing fees to record labels and artists, server maintenance, infrastructure upgrades, and staffing.
As the expenses rise, companies may choose to pass some of these costs onto consumers by raising subscription fees.
Furthermore, streaming services often strive to expand their content library to attract more subscribers and remain competitive in the market. Acquiring rights to new music, and exclusive releases, and expanding into other media formats like podcasts can lead to increased licensing costs, which might be reflected in higher subscription fees.
So, is it better now to purchase an album or continue streaming?
Some may consider purchasing albums. When you buy an album, you own a copy of the music. It means that you can listen to it indefinitely. Even if the artist or label decides to remove it from streaming platforms, like Spotify, you can still listen to the songs.
Purchased albums also offer higher audio quality than standard streaming services. This is especially true if you choose lossless formats.
And if you purchase an album, you are supporting the artists and the music industry. Artists will receive a more substantial share of the revenue from direct sales compared to streaming royalties.
But streaming music will give you an extensive collection of songs and albums. Thus, you can access to a wide variety of music across different genres. Plus, it is cost-effective. You have access to a vast library of music by paying a minimum amount. It makes it cost-effective especially if you listen to a lot of different artists and albums regularly.
If you enjoy exploring a vast library of music and prefer the convenience of streaming from various devices, then music streaming services can still be a better choice. But if you value ownership and high-quality audio, then purchasing albums might be more suitable for you.