Reported recently, several major music labels have been putting pressure on music streaming site platforms, including Apple Music and Spotify, to follow video-based streaming platforms like Netflix and Disney+ to maximize their profits.
Inflation is said to be the main cause behind this incident. To sum up, inflation has locked up the music industry behind, which is why there is a push for these services to watch, learn, and keep up with the TV streaming service giants.
Music Streaming Is Too Cheap
Compared to video-based streaming sites like Netflix and Disney+, the price in the industry of music streaming sites can be considered insignificant. According to the Financial Times, labels believe that streaming music sites like Apple Music are pressed to remain cheap for the public.
As they said, “Major record labels have been urging Spotify, Apple Music and other music streaming platforms to raise their fees, arguing that prices have lagged inflation and subscriptions are still cheap compared to video services like Netflix.”
The real case of this matter can be seen through the recent Spotify subscription in the United States, which costs $11.99, only two dollars higher than when it launched 14 years ago. While that cost may feel modest, it’s clearly making the music streaming industry too cheap and unprofitable.
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The Inflation: Apple Music And Other Streaming Platform Should Fix The Market
In response, Spotify has raised prices in other countries, including the UK, Switzerland, and Australia, in recent months. However, the Financial Times reports that a Spotify price increase is imminent, as Spotify will raise prices in the United States for the first time since 2024, with the increase scheduled for the first quarter of 2026.
Here is the data for the newest pricing subscription of popular music streaming services:
- Amazon Music Unlimited: $10.99/month ($9.99/month for Prime members)
- Spotify: $11.99/month
- Apple Music: $10.99/month
- YouTube Music Premium: $10.99/month
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With the increased steps that are taken by Spotify, it will be interesting to see what other music streaming platforms take. It will be no surprise if the other three big music streaming platforms follow the same steps due to the labels’ pressure in the future, which will fix their industry pricing.
Of course, if this happens, it will impact many parties. Although the public might stop their subscription because they would rather save their money for other matters, the impact will be great for labels and artists since they will now gain much more profit.
That’s all the reason behind why many labels pushed music streaming platforms, like Apple Music and Spotify, to fix their market like Netflix. Don’t miss other articles about the same topic, only at Price in UK!
