Spotify, Apple Music, Tidal, Google, and Rhapsody charge $9.99 a month (or more) for unlimited streaming music. But is that way too expensive?
That’s become a pressing question for the music industry, especially with free, ‘low rent’ music streaming absolutely surging.
Now, there’s more data showing that consumers thing $9.99 is simply too much. According to a US-based survey on the matter conducted by Nielsen Music at the end of 2015, a vast majority of Americans are unlikely to pay for music streaming in 2016. And the number one reason: cost.
In the next six months, how likely are you to pay money for a music streaming music service?
If you are not likely to pay for a music streaming service, what is the reason?
If you were to subscribe to a streaming music service, what would be the most important factors for you?
Source: Nielsen Music, US-based study.
At least one company is paying attention: Spotify. The company has a ‘list price’ of $9.99 a month, but has been offering aggressive discounts to students and trial users. Elsewhere, streaming services like Deezer and Rhapsody have been increasingly bundling their services into mobile data plans, a move that slips the broader costs into a bigger bill. Both strategies have boosted paying subscribers, though price-chopping has raised serious questions about long-term profitability.
Separately, Apple Music has remained firm on a defined, $9.99 price point, with a strict three-month trial window. That has resulted in roughly 8-10 million paying subscribers, according to the latest estimates, though a vast majority of music fans remain on free versions of Spotify, YouTube, and Pandora.
Written while listening to streaming music from Terrorizer and Repulsion (check out both at the ‘Show Your Scars Fest’ at the Regent Theater in Los Angeles this weekend).