Penetration rates have room to grow in both developed and emerging markets. That could mean music streamers will wait longer to hike fees.
Over the last decade, streaming platforms have mostly held prices steady while racking up over half a billion subscribers globally. But for years, music executives have questioned subscription services’ decision to sacrifice higher prices — and with them higher royalties to labels and artists — to gain more subscribers.Music streaming is following an age-old business tactic: launch at an affordable price, gain customers and, once people are hooked, raise prices.
Music platforms have been hesitant to raise prices — but they can. “We see real ARPU opportunity,” said Warner Music Group CFOduring the company’s August 9 earnings call, “and Spotify and Amazon that have done forms of price increases, I think, have proven to the market that it doesn’t have an impact on churn and that price increases are really available.” That’s true.
Developed markets “are roughly 30% penetrated in aggregate,” said Levin. “We’ve seen both research studies but also market forecasts that showed that [penetration rate] growing into the 50s or even 60s percent over time. Emerging markets are still penetrated in the mid-single digits and are starting to show real, real improved growth.”
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Prepare to Pay More for These TV Streaming Services — Best LifeDisney announced that its Disney+ and Hulu streaming services will see their subscription prices increase in the coming months.
Weiterlesen »
Disney Plus’ ad-supported plan will launch in DecemberAs the company raises prices on its standard ad-free plan.
Weiterlesen »
US Postal Service plans holiday price hikes for 3rd straight yearThe postal service said the temporary price increase on a variety of mail services will offset rising delivery costs.
Weiterlesen »
US Postal Service plans holiday price hikes for 3rd straight yearThe postal service said the temporary price increase on a variety of mail services will offset rising delivery costs.
Weiterlesen »
The US Postal Service is raising rates for the holidaysFor the third year in a row, the United States Postal Service is hiking the prices of its delivery services -- but just for a few months.
Weiterlesen »
The Disney Plus Subscription Price Is Going UpThe price of a Disney+ subscription is going up - by almost 40 percent.
Weiterlesen »