Summary:
- Spotify has announced another price hike for its subscription plans in the United States.
- This price increase comes shortly after Spotify CEO Daniel Ek sparked outrage among music fans and creators by claiming that the "cost of creating content is close to zero."
- Many musicians and music fans condemned Ek's comments, arguing that music is not just "content" and that it is costly and time-consuming to create.
- Despite the backlash, Spotify is increasing its standard Premium plan by $1 to $11.99, the Duo plan by $2 to $16.99, and the Family plan by $3 to $19.99 per month.
- Spotify claims the price hikes are necessary to invest in and innovate its product features, but this reasoning is questioned given Ek's "content" cost comments.
- Spotify is less vulnerable to customer churn compared to TV/movie streaming services, as users are less likely to switch music streaming providers due to the hassle of rebuilding playlists and losing personalized recommendations.
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