CEO of Universal Music Group Lucian Grainge expressed concern about the dropping streaming sales and advocated for a new approach that is “artist-centric.” There may be a slowdown in the growth of the music industry, as seen by the reports of flat or declining revenues from Universal Music and Warner Music Group. While sales of recorded music increased by 9% globally last year, leading streaming services are reaching their peak popularity in wealthy Western markets, and the advertising business is slowing down, which further reduces revenue.
Music executives are exploring cracking down on fraud and raising rewards for top musicians as a way to uncover new sources of growth. While some streaming platforms have looked into fan-powered royalties, major labels think well-known artists should be compensated more generously per song. Given the accessibility offered by websites like YouTube and Spotify, it can be difficult to distinguish between professional and amateur performers.
Price increases become the obvious short-term fix. Spotify’s base price in the US has remained at $10 per month, unlike Netflix, which has seen considerable price increases over the years. Although the music business feels that streaming fees should increase, there are barriers that prevent it from influencing digital firms. While Netflix claims that its original content improves its offering in comparison to music streaming companies, music providers must still give away a sizable amount of their money to rights holders.
However, as tech companies face financial pressures, they have started to raise prices. Amazon and Apple Music have already done so for certain plans, and Spotify has increased prices for its family plan and base plan in select markets. Spotify’s CEO, Daniel Ek, has hinted at a potential price increase in the US, with music companies suggesting regular increases as part of future contracts.
In this scenario, the consumer eventually loses out since once firms start raising prices, they rarely stop. If you use Spotify, you probably want to know about the new developments. If so, bookmark spotigeek.com and keep checking back as we update our page with all the latest Spotify news.
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