Spotify’s average global subscription price is further diluted by price promotions (it often runs a $.99-for-three-month-subscription deal to attract new users), as well as membership offers bundled with cellphone network tariffs. For example, in the first quarter of last year, Spotify expanded into four new regions, including Vietnam, where a subscription currently costs 59,000 Vietnamese Dong per month - equivalent to approximately U.S. Why doesn’t this figure equate exactly to the well-known standard Spotify subscription price of $9.99 per month? Because of a few factors that, as Cooper hinted, rankle the major labels.įor one, the average sum paid for Spotify subscriptions is diluted, globally, by the lower price points the company picks in certain regions, which tend to be sensitive to local GDP. Taken as a snapshot at the end of 2014, then, the average Spotify subscriber was paying €65.53 per year, which, at the prevailing annual exchange rate, translates at U.S. Spotify ended 2014 with 15 million global paying subscribers, who contributed €982.9 million in revenue to the company. Taylor Swift Reveals More 'Midnights' Lyrics on Spotify Billboards in Nashville, Brazilĭigging back through Spotify’s past filings at Luxembourg’s Companies Register, we can gather a picture of what the platform’s average subscriber was paying at the close of 2014 - four years before Cooper’s “concerning trend” comments. His bugbear? ARPU, or Average Revenue Per (paying) User, which reflects the mean price paid by consumers for a streaming subscription to services such as Spotify. Warner’s biggest money-spinners in the 12 months included records from stars like Cardi B, Ed Sheeran and Lil Uzi Vert, as well as the bestselling soundtrack to The Greatest Showman.Īnd yet, when he spoke to analysts after these results were published on December 20th, one couldn’t help noticing that Warner CEO Steve Cooper, now and again, sounded a little. This growth, predictably, was driven by surging yearly revenues from streaming services like Spotify, Apple Music, SoundCloud and Pandora, which hit $1.73 billion. WMG’s annual recorded-music revenues grew by $340 million, or 11 percent, to $3.36 billion - an all-time pinnacle for the major.
The company, which owns the third-biggest recorded-music operation in the world, just posted record full-year results for the 12 months to the end of September last year. On the surface of things, New York-based Warner Music Group should be delighted.
0 kommentar(er)
