Streaming Music Subscribers Decline in US as Spotify, Amazon See First Major Drop
Recent data from DMN Pro reveals a concerning trend in U.S. music streaming subscriptions, with Spotify Individual subscribers showing notable declines despite overall growth in other areas.
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Key Findings:
- Spotify Individual subscribers reached 23.96 million in September 2024
- While up 300,000 from September 2023, this represents a decline of 431,000 subscribers since February 2024
- Amazon Music also experienced a decrease in domestic subscribers
Market Response and Strategy:
- Spotify currently charges $11.99 monthly for Individual plans in the U.S.
- The company added approximately 2.67 million U.S. subscribers across all tiers between September 2023 and 2024
- New "Deluxe" tier planned at around $18 monthly, featuring high-quality audio and AI tools
Financial Performance:
- Spotify stock (NYSE: SPOT) up 141% year-to-date at $454 per share
- Market cap reaches $91.2 billion, nearly double that of Universal Music Group
Despite these subscriber challenges, Spotify continues to diversify beyond music, focusing on:
- Advertising expansion
- Superfan engagement
- Profitability improvements
- Family plan monetization opportunities
This trend warrants attention as major labels adjust their subscription-revenue growth strategies, though Spotify remains well-positioned through its diverse revenue streams and global growth in other markets.
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