Spotify’s management should probably prepare for a new round of ‘if Netflix can hike its price why can’t you?’ questions in the coming weeks.
Netflix is raising the price of its standard subscription plan from $13.99 to $15.49 in the US, and from C$14.99 to C$16.49 in Canada.
It’s the first time prices have gone up in those countries since October 2020 (which may provoke a wry smile for music rightsholders, considering how long $9.99 has been the standard subscription cost for music). Netflix has also increased the cost of its premium plan by a couple of dollars in both countries.
It’s interesting that Netflix feels confident enough to increase its price given a.) the economy is still being buffeted by the Covid-19 pandemic, and b.) competition in video streaming is more intense than ever thanks to Disney+, Amazon Prime Video, Apple TV+, HBO Max and other services.
So, if Netflix can hike its price, why can’t Spotify (AND rival streaming services of course)?
Video and music are very different markets: content exclusivity for starters. Spotify has raised its prices in dozens of countries, note, but investors and music rightsholders alike may be hoping Netflix’s action gives music services encouragement to push beyond the $9.99 individual-subscription ceiling.