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Spotify:Quarterly Results/2024 Q3: Difference between revisions
Spotify:Quarterly Results/2024 Q3 (view source)
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== Developments during the quarter == | == Developments during the quarter == | ||
=== Price increase === | |||
* On June 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 === | |||
* 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. | |||
* According to MLC, the action by Spotify on March will reduce the Service Provider Revenue reported to the MLC for Premium by around 50%. “The financial consequences of Spotify’s failure to meet its statutory obligations are enormous for Songwriters and Music Publishers," National Music Publishers Association (NMPA) boss David Israelite said on April 30. | |||
* “The lawsuit concerns terms that publishers and streaming services agreed to and celebrated years ago under the Phono IV agreement,” a Spotify spokesperson commented. | |||
* 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 === | ||