(Hypebot) – Amazon recently announced that it was increasing the prices of its music subscription service by $1 a month. Will other streaming services do the same?
A guest post by Bobby Owsinski of Music 3.0.
Ever since music streaming started, there has been a constant, the price of a monthly music streaming service subscription was always $9.99 per month. This price could be skewed a bit when a streaming plan was mixed into a plan or with a family plan, but the base price hasn’t changed, even with inflation knocking on everyone’s door. Now comes the word that Amazon will raise its price to Amazon Musicwhich makes you wonder if this isn’t the start of a series of price hikes from every streaming service.
Amazon announced price increases for two of its streaming music plans in multiple markets on May 5. This basically applies to those who are Amazon Prime members, who are now paying $7.99 for their Amazon Music Unlimited Individual Plan. This price will now increase to $8.99. Prime members on the annual subscription to Amazon Music Unlimited will now pay $89 per year, up from $79 per year.
Amazon raises the price of its Amazon Music on one device Plan, which gives Echo and Fire TV owners the ability to access the full service of Amazon Music Unlimited. It will drop from $3.99 to $4.99.
The increase only affects the United States, United Kingdom and Canada.
One point that can be overlooked is that the price of Amazon Music Unlimited for customers without an Amazon Prime subscription will remain unchanged at $9.99.
What could happen
What I expect is that Spotify, Apple Music and all other streaming services will now institute their own price increases on every plan except the individual plan. There is speculation that major labels have specified in their licensing agreements that individual plans for the service can only be priced at $9.99. If true, streaming networks are limited in how much they can charge for this program, but labels may be open to change as people get used to paying more for almost anything and $9.99 may no longer be a price barrier.
What could happen is that all the streaming services would increase their prices more or less at the same time. The reason being that music is now a commodity and it’s the same across all platforms. What you pay for is the user experience, but that’s not much different either. A service that even has a cheaper price of $1 per month will gain more users, which is why they all want to stay at the same price.
It should be interesting to watch. While that’s not great for the consumer’s pocketbook, it will mean more money to distribute among players in the music industry, including artists and songwriters. It’s never a bad thing.
Bobby Owsinski is a producer/engineer, author and coach. He is the author of 24 books on recording, music, the music industry and social media.
Learn more: https://music3point0.com/2022/04/07/will-amazon-lead-the-way-of-streaming-music-price-hikes/#ixzz7PxaUTq1c
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