Spotify is officially raising its Premium subscription rates in the US come July, following reports of the move in April. The platform is increasing its Individual plan from $11 to $12 monthly and its Duo plan from $15 to $17 monthly — the same jump as last year’s $1 and $2 price hikes, respectively. However, its Family plan is going up by a whopping $3, increasing from $17 to $20 monthly. The only subscribers getting a break are students, who will continue to pay $6 monthly.
Spotify announced the price hikes less than a year after its previous one last July. Before that, Spotify hadn’t raised its fees since launching a decade and a half ago. I guess it was too optimistic to hope the next increase would also take that long, especially with Spotify’s continued focus (and money dump) on audiobooks.
Premium subscribers should receive an email from Spotify in the next month detailing the price hike and providing a link to cancel their plan if they would prefer to do so. Users currently on a trial period for Spotify will get one month at $11 after it ends before being moved up to a $12 monthly fee.
Apple Music only raised the price by $1 since the launch in 2015 (9 years ago). But they added cool features like lossless audio quality and Dolby Atmos. They also had lyrics like 6 years before Spotify added them. I think you can even get it for $6 dollars if you’re a student.
They also payout about 2.5X what Spotify does to artists.
How does this work? Spotify has a deal with the music publishers, where they give 70 % of all subscription income to the music companies. The music companies (Sony, Warner, etc) then split the money based on the share of streams.
How can Apple pay out 2.5x70 %, so 175 %? Are thes losing with every subscription?