“If one increases its pricing, then it is simply a more expensive version of its competitors.” “There is a prisoner’s dilemma dynamic at play because of the lack of differentiation between the streaming services,” MIDiA Research analyst Mark Mulligan told me this week.Spotify streams the same music as Apple Music, Amazon Music and YouTube Music. Netflix produces shows and movies you won’t find anywhere else.oranges territory, but more like adding meat to your fruit salad. So why can’t Spotify just raise prices like Netflix? Turns out comparing those two companies isn’t even in the apples vs. The price of Netflix’s mid-tier subscription plan went from $8 to $15.50 during the same time, and everything else has become more expensive too: Adjusted for inflation, $10 in 2002 is equivalent to about $15.50 today.Fast-forward to 2022, and Spotify still charges $10 per month. You read that right: When streaming music pioneer Rhapsody (now known as Napster) first began offering unlimited streaming access to the major labels' catalogs in 2002, it priced its subscription bundle at $10 a month.Spotify has indeed lost billions of dollars over the years, a streak that continued in 2021: For the full year, the company booked net losses of $38.8 million on $11 billion in revenue, according to its latest earnings report released yesterday.Īnd there’s a big reason why Spotify isn’t generating profits: The price of music subscriptions hasn’t changed in 20 years.Some have even argued that the deck is fundamentally stacked against the streaming media industry, and that music subscription services can never be profitable. Music services have long struggled to pay those huge royalty checks their contracts with the music rights holders are calling for. Here’s another explanation: Spotify is in bed with Joe Rogan because streaming music is too damn cheap. Depending on who you ask, the whole controversy is about a company putting profits over public health, the difficulty of doing content moderation at scale or the demise of RSS. There’s been a lot of finger-pointing ever since Neil Young removed his music from Spotify last week to protest the company’s exclusive podcast distribution deal with Joe Rogan. Why you can blame the price of music for Joe Rogan
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