The company said: “The market landscape has continued to evolve since we launched. Spotify is also grappling with the poor performance of its expensive bet on podcasts, where it has laid off staff and cancelled deals with celebrity partners such as the Duke and Duchess of Sussex. US music industry revenues, adjusted for inflation, fell last year for the first time since 2015.Ī downturn in the advertising market has hit revenues from Spotify’s ad-funded users and there are growing concerns that streaming services are being manipulated by bots and fake songs. Global industry revenues have doubled since 2013 but have faced headwinds over the last year. Spotify’s rivals Apple Music, YouTube Music and Amazon Music Unlimited have all increased prices in the last year. Record label bosses have pushed for more money from streaming services, both through price rises and changes to payment arrangements.Įric Levin, the chief financial officer of Warner Music, one of the “big three” record labels, said in May: “We are doing what we can to try to encourage not just a price increase, but a recurring set of price increases.” Spotify, which has more than 200m paying subscribers, said the price rise was being made to “meet market demands”. It comes amid growing pressure from record labels and artists over payouts to the industry and growing concerns that music generated by artificial intelligence represents a threat to musicians. The Swedish company said it would also raise the price of a family subscription by £1 a month to £17.99. The streaming service will charge users £10.99 a month for its premium service, up from the £9.99 it has been since launch.
Spotify is raising the price of its main monthly subscription for the first time in its 15-year history as it comes under pressure to boost payments to the music industry.
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