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Spotify:Quarterly Results/2024 Q3: Difference between revisions
Spotify:Quarterly Results/2024 Q3 (view source)
Revision as of 20:38, 7 November 2024
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== Developments during the quarter == | == Developments during the quarter == | ||
=== | === Pricing, costs and competition developments === | ||
==== Audiobook launch in more European regions ==== | |||
* On October 24, Spotify announced the launch of audiobooks in premium in France, Belgium, the Netherlands, and Luxembourg<ref>https://newsroom.spotify.com/2024-10-14/audiobooks-launch-france-belgium-netherlands-luxembourg/</ref>. | * On October 24, Spotify announced the launch of audiobooks in premium in France, Belgium, the Netherlands, and Luxembourg<ref>https://newsroom.spotify.com/2024-10-14/audiobooks-launch-france-belgium-netherlands-luxembourg/</ref>. | ||
* This comes one year after Spotify introduced audiobooks in premium in the U.S., Canada, U.K., Ireland, Australia, and New Zealand. | * This comes one year after Spotify introduced audiobooks in premium in the U.S., Canada, U.K., Ireland, Australia, and New Zealand. | ||
* Audiobooks in premium is where Spotify offers free 200,000 audiobooks to premium subscribers<ref>https://newsroom.spotify.com/2023-10-03/audiobooks-included-in-spotify-premium/</ref>. | * Audiobooks in premium is where Spotify offers free 200,000 audiobooks to premium subscribers<ref>https://newsroom.spotify.com/2023-10-03/audiobooks-included-in-spotify-premium/</ref>. | ||
=== YouTube Music increased prices in Europe and other regions outside U.S. === | ==== YouTube Music increased prices in Europe and other regions outside U.S. ==== | ||
* At the end of September, Reddit users reported that they had received a notification from YouTube saying that prices will increase by up to 40% in Europe, Middle East, South America, and Southeast Asia, effective November 4<ref>https://www.musicbusinessworldwide.com/youtube-music-gets-more-expensive-as-users-in-16-countries-report-major-price-hikes-for-youtube-premium/</ref>. | * At the end of September, Reddit users reported that they had received a notification from YouTube saying that prices will increase by up to 40% in Europe, Middle East, South America, and Southeast Asia, effective November 4<ref>https://www.musicbusinessworldwide.com/youtube-music-gets-more-expensive-as-users-in-16-countries-report-major-price-hikes-for-youtube-premium/</ref>. | ||
=== Spotify introduced basic plan tier === | ==== Spotify introduced basic plan tier ==== | ||
* On June 24 2024, Spotify introduced a basic plan tier in U.S. priced at $10.99. The tier doesn't not include audiobook listening time<ref>https://newsroom.spotify.com/2024-06-21/more-choice-for-us-subscribers/</ref>. | * On June 24 2024, Spotify introduced a basic plan tier in U.S. priced at $10.99. The tier doesn't not include audiobook listening time<ref>https://newsroom.spotify.com/2024-06-21/more-choice-for-us-subscribers/</ref>. | ||
* The basic plan tier came three months after Spotify launched an exclusive audiobook tier in U.S. priced at $9.99<ref>https://newsroom.spotify.com/2024-03-01/spotifys-new-audiobooks-access-tier-gives-booklovers-more-listening-options/</ref>. | * The basic plan tier came three months after Spotify launched an exclusive audiobook tier in U.S. priced at $9.99<ref>https://newsroom.spotify.com/2024-03-01/spotifys-new-audiobooks-access-tier-gives-booklovers-more-listening-options/</ref>. | ||
=== Spotify increased prices in U.S. === | ==== Spotify increased prices in U.S. ==== | ||
* On June 3 2024, Spotify announced that it was increasing prices again in U.S. The individual plan will see an increase from $10.99 to $11.99 while the premium plan will increase from $16.99 to $19.99 per month. On the other hand, the Duo plan rose from $14.99 to $16.99. The student plan stayed unchanged at $5.99 per month<ref>https://newsroom.spotify.com/2024-06-03/adjusting-spotify-premium-prices-in-the-us/</ref>. | * On June 3 2024, Spotify announced that it was increasing prices again in U.S. The individual plan will see an increase from $10.99 to $11.99 while the premium plan will increase from $16.99 to $19.99 per month. On the other hand, the Duo plan rose from $14.99 to $16.99. The student plan stayed unchanged at $5.99 per month<ref>https://newsroom.spotify.com/2024-06-03/adjusting-spotify-premium-prices-in-the-us/</ref>. | ||
=== Legal action by MLC against Spotify for underpaying songwriters === | ==== Legal action by MLC against Spotify for underpaying songwriters ==== | ||
* On May 2024, the Mechanical Licensing Collective (The MLC) filed a lawsuit against Spotify for deciding in March to reclassify its Premium Individual, Duo, and Family subscription plans as Bundled Subscription Offerings because they now have audiobooks<ref>https://www.musicbusinessworldwide.com/spotify-sued-by-the-mlc-for-cutting-pay-rate-to-songwriters-via-premium-bundles/</ref>. | * On May 2024, the Mechanical Licensing Collective (The MLC) filed a lawsuit against Spotify for deciding in March to reclassify its Premium Individual, Duo, and Family subscription plans as Bundled Subscription Offerings because they now have audiobooks<ref>https://www.musicbusinessworldwide.com/spotify-sued-by-the-mlc-for-cutting-pay-rate-to-songwriters-via-premium-bundles/</ref>. | ||
* A 2022 legal settlement established that bundled services in the United States are permitted to pay a lower royalty to publishers and songwriters compared to standalone subscription services. | * A 2022 legal settlement established that bundled services in the United States are permitted to pay a lower royalty to publishers and songwriters compared to standalone subscription services. | ||
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* On August, Spotify filed a motion asking the court to dismiss the suit. Spotify estimates that if the MLC was to win the case, it will have to pay them 46 million euros. 35 million euros relates to Q2 while the rest is penalty<ref>[https://www.musicbusinessworldwide.com/spotify-asks-court-to-dismiss-mlc-lawsuit-over-cutting-pay-rate-to-songwriters-via-premium-bundles/#:~:text=Not%20only%20did%20Spotify%20not,also%20includes%20access%20to%20music. https://www.musicbusinessworldwide.com/spotify-asks-court-to-dismiss-mlc-lawsuit-over-cutting-pay-rate-to-songwriters-via-premium-bundles/#:~:text=Not%20only%20did%20Spotify%20not,also%20includes%20access%20to%20music.]</ref>. | * On August, Spotify filed a motion asking the court to dismiss the suit. Spotify estimates that if the MLC was to win the case, it will have to pay them 46 million euros. 35 million euros relates to Q2 while the rest is penalty<ref>[https://www.musicbusinessworldwide.com/spotify-asks-court-to-dismiss-mlc-lawsuit-over-cutting-pay-rate-to-songwriters-via-premium-bundles/#:~:text=Not%20only%20did%20Spotify%20not,also%20includes%20access%20to%20music. https://www.musicbusinessworldwide.com/spotify-asks-court-to-dismiss-mlc-lawsuit-over-cutting-pay-rate-to-songwriters-via-premium-bundles/#:~:text=Not%20only%20did%20Spotify%20not,also%20includes%20access%20to%20music.]</ref>. | ||
=== TikTok to shut down its music streaming business === | ==== TikTok to shut down its music streaming business ==== | ||
* TikTok recently said it will shut down TikTok Music streaming business at the end of November 2024<ref>https://techcrunch.com/2024/09/24/bytedance-is-shutting-down-tiktok-music-globally/#:~:text=We%20will%20be%20closing%20TikTok,Music%20Business%20Development%2C%20TikTok%20said</ref>. | * TikTok recently said it will shut down TikTok Music streaming business at the end of November 2024<ref>https://techcrunch.com/2024/09/24/bytedance-is-shutting-down-tiktok-music-globally/#:~:text=We%20will%20be%20closing%20TikTok,Music%20Business%20Development%2C%20TikTok%20said</ref>. | ||
* Deutsche Bank expects Spotify to absorb TikTok's 2-2.5 million subscribers<ref name=":0" />. | * Deutsche Bank expects Spotify to absorb TikTok's 2-2.5 million subscribers<ref name=":0" />. | ||
* In Q4, they expect 1.3M paid subscriber net add due to the shutdown. | * In Q4, they expect 1.3M paid subscriber net add due to the shutdown. | ||
=== Product developments === | |||
== Insights == | == Insights == | ||