Spotify raising premium plan prices in US to try to stay profitable

Comments

• Reply 1 of 14

  red oak Posts: 1,099member

  July 21, 2023 8:55PM

  Spotify has never posted an annual profit in it’s 15 year history 
  
  In 2022, it lost $470 million 
  
  Just the facts 

  
• Reply 2 of 14

  chasm Posts: 3,403member

  July 21, 2023 11:37PM

  red oak said:

  Spotify has never posted an annual profit in it’s 15 year history 
  
  In 2022, it lost $470 million 
  
  Just the facts 

  Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.

  
  

  Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

  
• Reply 3 of 14

  BiCC Posts: 59

  July 22, 2023 8:32AM

  red oak said:

  Spotify has never posted an annual profit in it’s 15 year history 
  
  In 2022, it lost $470 million 
  
  Just the facts 

  
  That is a fun fact!!!!!!! I read that to the misses and she spat out her drink!!!! Thank you for sharing.  Losing half a billion is a pretty big hit!!! Ouch. 
  

  
• Reply 4 of 14

  red oak Posts: 1,099member

  July 22, 2023 8:40AM

  chasm said:

  red oak said:

  Spotify has never posted an annual profit in it’s 15 year history 
  
  In 2022, it lost $470 million 
  
  Just the facts 

  Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.

  
  

  Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

  My guess is it’s profitable, but with gross margins - 20%.  Much lower than the 70% overall Service margin 
  
  
  
  
• Reply 5 of 14

  BiCC Posts: 59

  July 22, 2023 8:49AM

  chasm said:

  red oak said:

  Spotify has never posted an annual profit in it’s 15 year history 
  
  In 2022, it lost $470 million 
  
  Just the facts 

  Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.

  
  

  Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

  
  I like your speculation.  But here is the deal.  Everyone I know owns the CD or goes to Youtube or we simply listen to FM Radio.  Especially house parties it's all Youtube and that guy that plays DJ - Heavy Metal and the girls start to get pissed so we have to forcefully take away the remote and everyone laughs.  I love Megadeath but the girls start to get pissed, and it goes straight to gangster rap.  I can't make this up.  Hey everyone have you noticed for the longest time we go from Metal to Gangster Rap.  Thats why we keep on coming Dummy.
  

  
• Reply 6 of 14

  foregoneconclusion Posts: 2,740member

  July 22, 2023 1:12PM

  Article linked below is an interesting take on streaming in general, i.e., it constitutes magical thinking when it comes to the business side. 
  
  "In the end, the answer is immaterial. Silicon Valley's invasion of Hollywood brought with it science fictional notions of growth for the industry, a penchant for secrecy and unaccountability and the expectation that it could get away with treating workers like robots or invisible code."
  
  https://www.gwinnettdailypost.com/entertainment/tv/brian-merchant-hollywood-is-on-strike-because-ceos-fell-for-silicon-valleys-magical-thinking/article_d50488a0-3d45-5244-8606-22b259422252.html#

  
• Reply 7 of 14

  Aladick Posts: 4member

  July 22, 2023 2:13PM

  Meh.  Another $1 a month isn't a biggie for me.  I'll keep it.  I use Spotify and SiriusXM almost exclusively anymore.  I don't like YouTube or any of the freebies outside of those two platforms. Just my preference though.

  
• Reply 8 of 14

  macxpress Posts: 5,855member

  July 22, 2023 2:52PM

  chasm said:

  red oak said:

  Spotify has never posted an annual profit in it’s 15 year history 
  
  In 2022, it lost $470 million 
  
  Just the facts 

  Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.

  
  

  Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

  Apple Music doesn't necessarily need to make a profit as it has other things to offset the losses such as things like AirPods for example which people will buy to listen to Apple Music. Spotify has music....and they have, well music and thats not making money for them. 

  
• Reply 9 of 14

  RudeBoyRudy Posts: 106member

  July 22, 2023 7:15PM

  Regardless of the financial state of Spotify. It runs circles around Apple Music. Just a better recommendation and playlist experience.
  
  
  

  
• Reply 10 of 14

  Appleish Posts: 698member

  July 22, 2023 7:36PM

  Worth it now that they've launched Spotify HiFi!  Oh wait...

  
• Reply 11 of 14

  StaceyMJ_8611 Posts: 3member

  July 23, 2023 4:12AM

  I’ll stick with my free Apple Music subscription which I love by the way. 

  
• Reply 12 of 14

  Ofer Posts: 260unconfirmed, member

  July 23, 2023 3:53PM

  RudeBoyRudy said:

  Regardless of the financial state of Spotify. It runs circles around Apple Music. Just a better recommendation and playlist experience.
  
  
  

  Yeah, sadly agreed. I tried Apple Music and really really wanted to like it, since I’m pretty invested in the Apple ecosystem and like most of Apple’s other products. But for me Spotify was just a lot better. 

  
• Reply 13 of 14

  FileMakerFeller Posts: 1,561member

  July 24, 2023 10:11PM

  chasm said:

  red oak said:

  Spotify has never posted an annual profit in it’s 15 year history 
  
  In 2022, it lost $470 million 
  
  Just the facts 

  Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.

  
  

  Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

  [emphasis added]
  
  I'm not sure you can make that claim. All the music streaming services pay a bundle of money to the music publishers based on their subscriber base. The publishers then pass some of that money on to the artists. I find it unlikely that the price to each service is greatly different on a per-subscriber basis.
  
  To calculate the price paid per streaming event you take the average number of streams per subscriber. If subscribers to one service listen to fewer streams than subscribers to another service, the first service can claim to be paying more per-stream (hello, Apple) but on an aggregate basis it's not treating the artists any better.
• Reply 14 of 14

  holycow Posts: 13member

  September 26, 2023 5:43AM

  I love Spotify. However, with their prices increasing it's much more convenient to use the Apple Music. On top, they often have promotions like pay 1 get 3 and so on.