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Spotify Is Now Offering $2.89 Subscriptions In Asia…

spotifyphillipines

Having trouble selling subscriptions?  One solution is to drastically lower the price.  Which is exactly what’s happening at Spotify: last month, Spotify started offering students half-price subscriptions.  Now, as part of its rollout in Asia, Spotify is offering premium subscriptions for just 129 Phillipine Pesos, of $2.89 in American dollars.

In nearby Malaysia, the monthly price tag is $4.60.  But that’s the just the beginning: as part of its rollout in the Phillipines, Globe Telecom subscribers can enjoy premium Spotify subscriptions for as low as 20 cents a day.

Spotify currently has 6 million subscribers, but appears to be having serious difficulties reaching 7 million.

Written while listening to Gorilla Zoe. 

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Comments (27)
  1. Casey

    I can’t fault Spotify here. The Philippines has a different economy than the US/Europe as well as a different music industry. $10 may very well not be a sustainable price for music in that market. They can always raise it in the future.


    Reply
    1. Anonymous

      “I can’t fault Spotify here”

      …or anywhere else.


      Reply
      1. Casey

        Oh believe me, I have more negative things to say about them than I do positive. I just don’t say a lot of them here because the complaints are not usually relevant.


        Reply
  2. john

    this is huge. i wonder how long it will take for the video on demand side of the picture to realize that the only two options in the world aren’t iTunes vs. Torrenting. There is a fucking ocean of money to be made in the developing world, but corporate scumbags normally can’t see this opportunity because they are too worried about trying to maintain an impossible 9.99 per album, 19.99 per movie standard into the future.


    Reply
  3. Me

    Isn’t everything cheaper in The Philippines?


    Reply
  4. TuneHunter

    It is FREE for most $6.5 for full ownership and $3.25 for rest of the crowd in Poland.

    Full steam to 25 billion streaming and tubing plateau in 2025.

    Why are we waisting time and resources?

    Let’s reshuffle the game board and go for 100 billion discovery moment monetization and happiness for all!


    Reply
    1. PiratesWinInThePhilippinesLOL

      If there is no Spotify then the alternative is the 30 pesos pirated CDs sold outside the malls and such places. So do you want possibly a little bit, or do you want absolutely nothing?


      Reply
      1. TuneHunter

        Virtual walls for music are overdue.
        A/ Convert music ID guys like Shazam to cash registers.
        B/ Reduce tune info on the Radio (both terrestrial and web based) and for streamers.
        C/ Convert all to music merchants.

        Not part of your “confirmed” play list? Sorry, no info on display – you got to pay – just 39 cents
        for addition to playlist and… OWNERSHIP!

        100 billion dollar industry before 2020.


        Reply
  5. RealistiC

    SADLY by the time Spotify figures out how to make money, tech will continue to advance and 10 to 20 FREE spotify-like sites/apps will arrive, existing off initial investment capital and will begin along the same arc of discovery.{ AKA no mass market will pay for shit you have already given them for free.} Reason this is valid to musicians is as follows =Spotify believes once it corners the world market, only then will it pay higher royalties. Music will be continually downgraded in value for all time to come. Alas, jam on and try to hock merc.
    “…just tellin truths” GOT


    Reply
  6. CatDog

    Deezer NOW!!!


    Reply
  7. remix

    Spotify thieves have got to be closed down. They are robbing the songwriters of their rights and income. Scammers like this have got to be stopped.


    Reply
  8. Danwriter

    Pricing has to be proportional to local economies. That said, these are regions where music piracy has been historically high and remains so (http://katpauso.com/2011/08/music-piracy-and-the-philippine-government/). Doubt that affordable music services will necessarily put a dent in that. Agree that Spotify is a classic pump-and-dump market play, but they won’t have the leverage to raise prices if they do achieve hegemony. It’s not like they’re Comcast.


    Reply
  9. Anon

    Please lets have rational reporting here. $2.89 is still EXPENSIVE in a market like this. If music services are going to get traction and scale (and we all really need them to), we need to see much more of this. Deezer has been unable to gain much traction at all at the $5 a month level in many emerging markets they are in.

    When I heard Mark Geiger talk at Midem about 500m users spending $10 a month on music subscriptions I was shocked he wasn’t questioned on it – because $10 a month is not and will never be a price point that scales, not in developed markets and certainly never in emerging ones.


    Reply
  10. DUDE

    Worth noting that GDP per capita in the Phillipines is less than a tenth what it is in the States… but when has context ever mattered right, Im sure you could draw blood from a stone if only you squeezed hard enough


    Reply
    1. Anon

      Never. Labels crudely tend to discount their pricing in bands – B (Eastern Europe for e.g.) being 75% of A (US, UK etc), C (much of LATM and some SEA) being 50% of A, and D (India, much of Africa etc) being 75% of A.

      As you point out, getting a 50% discount in a country that has 1/10 of an A tier countries per capital GDP isn’t likely to be affordable if you want scale.


      Reply
      1. DUDE

        Well they’re doing better than Paul and most of the people commenting here at least, the implication here seems to be that Filipinos should pay full US prices for Spotify in spite of the fact that they’re 10 times poorer than Americans on average


        Reply
        1. Paul Resnikoff

          Hate to be blunt, but this seems to be a silly line of reasoning. Why? Spotify should heavily discount only if it makes sense to do so, not for benefit of the people of the Phillipines (who are great people) but for Spotify. It’s simple business: price differentiation and regional pricing variation makes sense, IF it can be done profitably. I just hope that Spotify has a severely discounted royalty structure in the Phillipines, Malaysia and similarly-situated countries. If not, this is a crude grab for paying subscribers and suspicious pre-IPO move.


          Reply
          1. DUDE

            Spotify’s royalties are based on 70% of their revenues times market share are they not? If Im correct, then lower subscriber fees mean lower revenues mean lower payments to their licensors so they’re covered there. Other than their royalties I cant imagine Spotify having any major costs of goods to cover so I dunno how they’d take a loss on these subscriptions. Maybe temporarily, if they spend a bunch on marketing and overheads to grow their subscriber base, but those temporary losses could be very worth in the long run


            Reply
            1. TuneHunter

              Licensors are the labels.

              Labels will take any cash to keep Titanic patched up with fun, good music and mini golf on board!

              We do not need avant grade patches – we need normal monetization leading to 100B dollar industry.


              Reply
              1. Paul Resnikoff

                Patching the Titanic, ha… that’s appropriate. I might use that one.

                But in response to DUDE: no, I’d re-examine your assumptions on royalty payouts. A very substantial sum is paid in the form of upfront sunk costs to major label rights owners, which must be renewed after a period of time. Then, you have all sorts of operational costs, both physical and digital, which are enterprise level and now globally expansive.

                The more I look at this mess, the more I think (a) Spotify has a decent chance of having a happy ending with an extremely lucrative, bubble-fueled IPO, and (b) the long-term winners will be those that can subsidize streaming, like Apple, Google, Amazon, etc.


                Reply
                1. TuneHunter

                  Paul, Still there is no room for winers with so many big fish in $15B mud ring.

                  We have to restart SALES!

                  100 billion dollar industry is behind the corner with just minor reshuffling.

                  For the moment just music ID & Google YT has to change the business model to go from 15 to 30B in 2 years.


                  Reply
                2. DUDE

                  Im sure Spotify’s overheads are HUGE but those are fixed and I dont see how they’d raise them substantially by licensing to the Phillipines… the infrastructure (their player and library) is already in place and a bunch of the work (if not all of it) can probably be handled by their existing staff. Advances (if they paid any) might hurt upfront but unless they’ve agreed to pay out way too much they’re gonna recoup those out of royalties eventually so its not like they’re spending money there that they wouldn’t spend eventually anyways

                  Did you not get the difference between variable costs and overheads or are you just being obtuse about it so you can hate on Spotify for no reason


                  Reply
                  1. TuneHunter

                    Total global value of streaming (if they do the best job possible) is 500 million subs at $3 and that is just 18 billion dollars globally by 2025 Ads will ad 7B and we will have 25B industry. 1999 = 75B in 2025

                    At that point there will be no music as a merchandise – NO iTunes, NO Amazon & NO CDs Global radio revenues will shrink from over 40B to less than 20B by 2025.

                    NET RESULT OF OPEN ALL INCLUSIVE STREAMING IS SHRINKING OF CURRENT BUSINESS ACTIVITIES!

                    15B for music +43B from radio =58B to new total global activity of 25B for subs & ads + 20 for Radio = 45B

                    You tell me what vision it is to keep busy just convert 58B of current activity to 45B in a decade.

                    It is obvious that the owners of content need new type of drug to realize that there is 100 billion dollars of music and we do not have to give all content fortified and improved Napsters or Tube style industrial toilet to get there.


                    Reply
          2. R.P.

            Oh right, because they will have to pay the Malaysian and Filipino artists royalties, correct?

            Seriously? Most of that added revenue and streams will go to major artist that are already out there or buzzing. This does not hurt Spotify at all, in fact, it helps them as a new revenue stream. Just get blinded by hate that it’s borderline moronic.


            Reply
  11. Stu

    I’d be willing to bet they have more than 9m subscribers but don’t want to announce a new milestone until they hit 10m, rather than announce every million. The Angry Birds folk did a similar thing when they were ramping up to 1bn downloads.


    Reply
  12. Anonymous

    So guys, what ever happened to the whole “piracy makes content cost more”?


    Reply
  13. Sporadic reader

    Is it somehow possible to remove comments from the moron who keeps droning on about discovery moment…. ? It really is getting tedious.


    Reply

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