When Bloomberg reported that Spotify would be upping the cost of its premium subscription from $9.99 to $10.99, and including 15 hours of audiobooks per month in the U.S., the change sounded like a win for songwriters and publishers. Higher subscription prices typically equate to a bump in U.S. mechanical royalties — but not this time.
By adding audiobooks into Spotify’s premium tier, the streaming service now claims it qualifies to pay a discounted “bundle” rate to songwriters for premium streams, given Spotify now has to pay licensing for both books and music from the same price tag — which will only be a dollar higher than when music was the only premium offering. Additionally, Spotify will reclassify its duo and family subscription plans as bundles as well.
I 100% agree with everything you said. It’s just that I thought people wouldn’t put up with the stuff Netflix has been pulling but I was wrong.
Music is different though…
netflix is also added ad supported tiers at lower prices, so chances are they’re the primary account holders. That and the fact that they have a couple really good shows still. Netflix is probably nearly bleeding at the edges, or soon to be bleeding at the edges though, they’re probably post pandemic high riding a little bit even now.
Though it’s also worth noting people are actually starting to pirate media more now due to the breadth of streaming services that exist, it doesn’t seem to be just the one service, it seems to be the fact that there are 12 now that’s causing it.