Music streaming giant Spotify has confirmed its plans to raise the monthly subscription fee for its premium service in five markets, including the UK, the US and Pakistan. The company had hiked the price of its subscription service for the first time last summer, where the previous price for premium membership had increased from £9.99 to £10.99 in the UK. The new subscription price for its premium plan will increase to £11.99 in the UK, while users in the US will have to pay $12. The company plans to raise prices in the US later in the year.
A spokesperson for Spotify explained the subscription price increase was necessary “so that we can keep innovating and delivering value to fans, the music industry, and creators on our platform.” They added that the company had started informing its existing subscribers of the increased price and what it meant for their account.
Last year, there was a spike in the number of music streams measured in the UK, with figures doubling from 90.5 billion in 2018 to 179.6 billion. Meanwhile, around 67% of the global music industry revenue was made up by streaming platforms according to the International Federation of the Phonographic Industry (IFPI) when it reported last year.
Furthermore, the Swedish company has officially demonetised all songs on its platform that have less than 1,000 streams. The new policy was launched on April 1, and follows speculation over new policies the company would introduce, leading to rumours that Spotify would make it harder for artists to generate royalties from their music. However, the company revealed that this move had been planned for some time.
Trent Reznor, from Nine Inch Nails, recently criticised the music streaming industry for its “terrible payout,” stating that it “has mortally wounded a whole tier of artists that make being an artist unsustainable.” He added that the terrible payout of streaming services had made being an artist unsustainable for many
Read the full article on NME here: Read More