Analytic Dreamz: Notorious Mass Effect - "SPOTIFY PLANS TO RAISE PRICES IN THE U.S."

Episode Date: July 4, 2023

Linktree: https://linktr.ee/AnalyticIn this segment of Notorious Mass Effect, Analytic Dreamz discusses Spotify CEO Daniel Ek's recent comments about raising prices in the US. Ek said that the company is "ready" to raise prices, but that it will depend on negotiations with music industry stakeholders.Analytic Dreamz provides some background on Spotify's financial performance, which has been strong in recent quarters. The company's revenue is up 14% year-over-year, and its monthly active users are up 22%. However, its premium subscriber growth has slowed, rising just 15% in the most recent quarter.Ek believes that raising prices in the US would be in line with Spotify's international pricing. The company has already raised prices in 46 countries, and Ek says that these price hikes have not led to a significant decline in subscribers.Analytic Dreamz discusses the pros and cons of a price hike in the US. On the one hand, it would help Spotify to generate more revenue, which could be used to invest in new content and features. On the other hand, it could alienate some customers and lead to churn.Ultimately, the decision of whether or not to raise prices in the US will be up to Spotify and its music industry partners. Analytic Dreamz will continue to follow this story and provide updates on his podcast.Privacy & Opt-Out: https://redcircle.com/privacy

I blame all of the honorable and sound-minded people for knowing what's the best DSP on the market. Because, well, because of y'all, Spotify has decided to raise its prices in the United States. Shaking my head. Now I went to the second place competitor, which is Apple Music, which even calling them second place, is just deceiving in itself. Because if you really look at the numbers, I mean, Spotify has 422 million users. Apple has 98. Spotify has 210 million premium subscribers. Apple Music has 77. revenue

Spotify has 11.9 billion which you might as well just say 12 you know what I mean what's rounding up a B you know and Apple has four market share Spotify has 33% of the global market share and guess what Apple has 15

so as we see ladies and gentlemen it's just not close in the race of Apple and Spotify which have led which has led Spotify CEO Daniel Eck to consider. So it's not finalized yet. But he's considering raising the prices in order to, quote, continue to invest in our product and services, aka y'all not going nowhere.

Y'all going to stay right here as you raise these prices. Similar to how Netflix took away the ability, to share your password and now the numbers are through the roof on the amount of new accounts created. So because of that,

we have Spotify raising their prices. We have Apple over there just sitting, twiddling their thumbs because they can't do anything. I mean, what they're going to say? I mean, Spotify basically run the DSP market at this point. And I've looked at other reports

and unfortunately Finally, they said the Spotify CEO wasn't bluffing. The prices are definitely going to be raised because the cost of music licensing is rising. My fault, I can't read, is rising. And Spotify has to pay music labels and publishers for the rights to stream them music. Like I keep saying, the big bad wolf of the music industry is UMG, aka Universal Music Group, who has all of your popular artists from the drakes to the jessabeebers to the taylor swifts to the conier west

imagine umg giving an asking price to spotify and spotify saying no and all of those artists and the catalog being taken off that site probably wouldn't go well for spotify huh so whatever umg asked for as far as licensing their artist's music Spotify is going to gladly pay that price and also another reason I was being told is that Spotify I mean this is the obvious one but they just want more money man I mean Spotify

is a profitable company of course but it's hoping that a price increase will boost its profits now if that's not the most transparent answer I've ever seen when it came to why a company wanted to raise this prices that i don't know what is but and then of course we have spotify is also facing increased competition with other streaming services such as apple music and amazon and because of them raising their prices for some odd reason because they're definitely not number one as i just read

off the numbers Spotify has to raise their prices in order to stay competitive now that that reason right there sounds like a bunch of malarkey to me but to each is on we still don't know how much a spotify will raise the price by but it is safe to say that they are going to raise their prices because Spotify just has a significant lead in a number of user and premium subscribers when it comes to DSPs um the music library is even larger down for music so when you get when you um refer back to what I was saying about the licensing, the music. They have probably a bigger bill that they have to pay compared to Apple. And then Spotify does offer a free ad supported tier.

So it's like, you can listen for free. You may just have to put up with a bunch of ads. And speaking of ads, I don't know what I was about to say right there. So we're just going to leave it at that. So anyways, click my link to my bio. Let me know one of my social medias. What do you think about Spotify raising the price? and just not caring about the competition or competitors or just the users who are just down bad and broke because i used to be there in my high school days so what do you think about spotify planning to raise the prices in the united states and do you even care or do you think it's i got to phrase that question better so basically do you care that spotify is raising their prices or do you think it's

about that time because of the lead that Spotify has in the DSP market