3 Takeaways About Music Streaming From Recent Earnings Reports

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Subscriptions remain strong, and “music is highly undervalued,” according to Deezer CEO Jeronimo Folgueira.

on July 24 to great fanfare. After all, the price had gone unchanged since the service launched in the United States in 2011, although the family plan price increased by $2 per month in 2021. Spotify is relatively late to the game, though. Deezer raised its price from 9.99 euros to 10.99 euros in January 2022 — a major factor in the company’s direct subscriber average revenue per user climbing 4.9% year over year. Apple Music and Amazon Music both raised their prices last year as well.

At Spotify, music advertising revenue grew in the “mid-single digits” year-over-year, lower than the 12% growth in total ad-supported revenue. That implies advertising revenue from podcasts, which was up 30% year-over-year, contributed to most of the growth. Spotify also noted “softer pricing due to the macroeconomic environment” that offset double-digit gains in impressions.

 

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