The recorded music industry is optimistic about rising prices for premium streaming services in major markets.
Universal Music Group shareholders Bill Ackerman has been particularly outspoken on the topic, repeatedly stating his belief that “regular price increases will become the norm in the audio streaming industry, just like they have in the video streaming industry.”
Other industry leaders who expressed confidence that there is room for continued price increases include UMG bosses; Sir Lucian GrangeSony Music Group Rob Stringerand Warner Music Group Robert Kinkel. (KenlFor example, he said: “We believe The market will endure further price increases In the future, we expect them to arrive more regularly than in the past.
in the most critical music industrythis exact pattern is playing out.
For example, despite price increases Spotify, Apple Music, YouTube Music and Amazon Music last year, USA Personal music streaming subscriptions grew by more than Annual reduction of 5 million (Based on RIAA data, see below).
Spotify has just raised the price of its flagship Personal Premium in the US for the second time in 12 months; monthly prices go from $9.99 to $10.99 SPOT recently raised this price again in July 2023, from $10.99 every month to $11.99 per month.
(In this article, we will avoid discussing how much of the proceeds from this new pricing structure will flow to Music & Audiobooks!
However, there is another traditionally important music market where different patterns seem to be starting to become apparent: Sweden.
Every two years, Scandinavia’s three debt collection associations meet – KODA (Denmark), TEOSTO (Finland), and Apply (Norway)collectively referred to as Polaris Nordic – Survey of Nordic music listeners with yugev.
The latest versions of these reports have just been released. It reflects data compiled from interviews 4,000 unique individuals Across the Nordic region in May 2024.
The report contains some beneficial statistics for music business rights holders, including the following facts: 55% of Nordic people now pay for music subscriptions – from 53% 2022 and 49% 2020.
one specific statisticsHowever, it may give the wider music industry pause for thought.
According to a YouGov survey, 56% people are here Sweden Pay for your premium subscription now directly or through a bundle.
However, this number is down and 59% of respondents Sweden Who said they paid for a premium music subscription in 2022.
According to a YouGov survey, the number of people who exclusively listened to music online during the same time period free Sweden’s streaming service (or free trial) tiers surge from 34% by 2022 39% 2024.
What happened?
SwedenThe birthplace of Spotify, it has long proven itself to be an accelerating market in terms of the maturity of music streaming.
During the rapid growth of global music streaming/subscriptions from 2015 to 2020, Sweden Often setting the pace, its market penetration is higher than most other regions in the world.
For example, ten years ago in 2014—just three years later Spotify Launched in USA – Streaming has claimed it’s over 79% % of Sweden’s entire music market.
Swedish Early Adopter Streaming The status of the modern music industry is also reflected in the region’s pricing.
In 2021, Spotify did the same in the U.S., raising its monthly revenue individual premium Swedish prices 10%from 99 SEK (About $9.99) arrive 109 Swedish Krona (About $10.99).
today, Spotify Pricing has changed again in its home country.
Swedish customers Personal Premium Subscription Offers a one-month free trial with no ads Spotify. Thereafter, they must pay 119 Swedish krona (approx. $11.21) per month.
According to new Polaris Nordic/YouGov Polling suggests this pricing structure may test the will of some Sweden Consumers spend money on music.
In a YouGov survey, Nordic consumers No People currently subscribed to music streaming services were asked if they agreed Series Statement About why they refused to put their hands in their pockets.
Two of these statements (see below) are particularly telling:
- “[The paid service] too expensive” saw 36% of respondents Sweden Agree, from 33% 2022;
- “There are so many options for streaming music for free so I don’t see why I should pay” saw 27% Respondents in Sweden agreed, more than twenty four% 2022 (see below).
To be clear, the drop Sweden Consumers who say they will subscribe to a paid music service in 2024 compared to 2022 possible or Not allowed and economic sensitivity How these consumers fare when it comes to streaming pricing.
It is also worth mentioning that according to International federation of food industry Statistical data, Sweden Actually saw YoY Increase Exceed 6% according to Recorded music industry subscription streaming revenue in 2023.
please remember: YouGov poll What is mentioned here only reflects one person’s answer More than 4,000 people A sample of Nordic people. Sweden alone has more than 10 million people.
RE: There still seems to be room for growth in music subscriptions in Scandinavia. While 55% of the 4,000 respondents said they currently pay for a music streaming subscription, this is significantly lower than the proportion paying for TV and movie streaming, which currently stands at 83% (Up from 81% in 2022).
Even so, these statistics are a reminder that while rising streaming subscription prices in major markets may seem like a smart strategy for music rights holders pursuing growth, consumer behavior is never guaranteed.
You can read the new full Polaris Nordic/YouGov report here.global music business
