Baptiste Morin, edited by Gauthier Delomez
While Spotify, the number one in music streaming, will soon increase the price of its individual subscription, it is more broadly all the music and video streaming platforms which are announcing their price increases one by one. The explanation lies in a very deep and lasting change.
The price increase at Spotify, whose individual subscription will pass the symbolic bar of 10 euros per month in the coming weeks, will follow those already recorded at its competitors Deezer, last January, and Apple Music last week. All will soon find themselves with an individual subscription above 10 euros. The situation is similar on the video streaming side.
Netflix, Prime Video, Disney+… All platforms have, or will increase their prices. Some launch cheaper offers in parallel with advertising.
Price increase and assertive strategies
“At launch, the platforms monetize users little because they seek to attract them and make them captive,” explains Marianne Lumeau, teacher-researcher at Rennes I University and specialist in the digital economy. “Once consumers are locked into usage, platforms increase the subscription price and that’s what’s happening today.”
The increase in tariffs is accompanied by more clear-cut strategies. Spotify has bet on podcasts, Apple Music has bet on audio books for example. All of this is aimed at trying to cope with alarming financial situations. Spotify’s losses reach 166 million euros. Netflix’s debt is close to 15 billion euros.