Indie Music

Average Spotify Subscriber Pays $5.50 Per Month And Falling. That’s Less Money For Artists, Labels

Spotify New $The average price that a Spotify subscriber pays in dropping, and that has artists and record labels worried. Despite a stated price of $9.99 USD / €9.99 EU , the actual average price paid global is just $5.50 per month and falling.

Spotify prices vary from country to country based on local currency, and according to the streamer, what each market will bear.  Logically, subscribers in a developing country will pay far less than in the US. 

But in November, when Spotify launched in the Middle East and North Africa (MENA), regionwide pricing meant that users in some of the richest countries in the world were paying half of what the US and EU pay.

Half Price In The Richest Countries On Earth

Within MENA, the United Arab Emirates are among the world's richest countries with a per capita GDP of  $68,250 USD and Saudi Arabia ranks just behind the U.S. at 12th richest with a $55,260 GDP per capita. In Saudi Arabia and UAE, Spotify is said to be charging 19.99 Saudi Riyal and 19.99 dirham respectively, which is about $5.33 USD per month. Other wealthy MENA countries include #1 Qatar at $124,930 GDP per capita and  #7 Kuwait with $69,670 GDP per capita.

$5 student discounts also lower Spotify's average subscription revenue, as do $15.00 for 6 account family plans and 3 months for 99 cents trial subscriptions. 

According to an analysis by Tim Ingham for Rolling Stone, the average Spotify subscriber around the world is paying over $20 less per year than four years ago. "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. $87.09, or $7.26 per month. "

That average should fall even further in 2019 when Spotify enters India's massive music market with prices expected to be near the local equivalent of $5. 

Label Negotiations

All of this has labels worried and are certain to be a major topic as Spotify renegotiates its current licensing deal with Universal at the end of Q1, followed in 2019 by Sony and then WMG.

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