### What happened
Global subscription revenues for music are climbing steadily, but music streaming services like Spotify charge significantly less than video streaming giants like Netflix, despite frequent updates and premium offerings.
### Why it matters
The pricing disparity questions the overall value perception between different types of media content, affecting how rights holders and content providers strategize monetization in the digital age.
### Key Takeaways
– Netflix has consistently raised its prices, whereas Spotify has been more conservative with price hikes, impacting perceived value.
– Despite less aggressive pricing, music streaming’s global trade revenue from paid subscriptions rose by 9.5% YoY in 2024.
– Spotify plans to introduce a higher-priced ‘Music Pro’ tier, signaling a potential shift towards enhancing perceived value through exclusive features.
– The slow growth in ad-supported streaming revenues highlights a possible saturation or diminished returns, urging a reevaluation of pricing strategies.
– Industry leaders are now pushed to focus more on value provision rather than just competitive pricing, potentially leading to a restructured market approach.