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Sound & Vision: Spotify price hike

by xyonent
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OPINION: Another year of price hikes. Despite rumors that the Supremium tier is finally launching, US subscribers will be hit with another price increase for a service that is generally not improving, or maybe even getting better.

I’ve written before that Tidal’s subscription price cuts would put more pressure on Spotify, but with this latest price increase, Spotify seems confident that subscribers won’t switch.

Call it overconfidence, arrogance or necessity: Most people are not going to trade in their library of albums and playlists for a service they’re unfamiliar with.

Spotify isn’t known for raising prices like some modern streaming services have, and while the 2023 price increase would be the first since 2011, and we’d all agree that’s a long time to wait for the first price hike, two in one year? That’s starting to seem suspicious, especially since they warned US customers with a fairly innocuous statement that they would continue to raise prices. “Invest in and innovate the capabilities of our products” To deliver the best experience – but we’re yet to see any signs of Supreme level.

The existence of a Spotify Hi-Fi (or Supremium tier) pops up every now and then, hinting at an imminent release, only to disappear into internet chatter. A higher-charging tier (and one that offers higher quality audio) would likely help boost revenue, but for some reason Spotify seems hesitant to jump into territory that others were happy to jump into years ago. This is a bit of a headache for me, because music, like any other “content,” is being devalued in a race to the bottom.

But still, higher prices should be a good thing for artists, musicians and content creators in terms of revenue and royalties, right? Well, not really.

Spotify AI Playlists

As previously noted, the lawsuit alleges that Spotify’s addition of audiobooks to its (current) premium tier entitles the service to pay songwriters a discounted bundled fee for streams, resulting in less money being paid to artists. Billboard Figures In the US, it’s expected to be down by around $150 million, though this seems more of a guess than an actual quantifiable figure, and it could be less than that, but either way, artists will likely receive less than they did last year.

And despite the price increase, while still looking for more investments to put towards “innovations” on the service, Spotify has chosen to further impress upon its subscribers’ faces by restricting the feature to its premium tier, or at least “testing” it to gauge their reaction. The lyrics feature was introduced to the premium tier without any official announcement announcing the change, temporary or otherwise.

Taking away something that everyone has access to and then raising the drawbridge to make you pay for a premium tier is not a good look. This is as infuriating as when Prime Video introduced Dolby Vision and Atmos to their new tiers but said nothing about it. This does not incentivize people to join or have a lot of trust in the brand.

Spotify seems sloppy and haphazard in its intentions, as if it is thinking out loud rather than using an inner voice to make an actual plan. Spotify is the largest music streaming service, but it seems to be constantly plagued by an affliction that affects all companies: the need to grow and increase revenue and profits at the expense of common sense.

All of this has contributed to the company looking like a mess over the past few years. Some companies are too big to fail, and Spotify is one of them, but the company has made some foolish moves. He also makes some pretty silly comments.And at some point, the subscriber Saying Enough Is EnoughUnless Spotify opposes that approach, that moment may come sooner rather than later.

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