Deezer is increasing streaming subscription prices again in certain markets.
The Paris-based DSP led the way in increasing prices, a move which CEO Jeronimo Folguiera told Music Week earlier this year was essential for strong revenue growth in recorded music and remuneration for artists.
Other DSPs have since followed suit, with Spotify the most recent to increase prices. It follows a decade where prices were unchanged.
In its latest round of price rises, Deezer has put up the individual subscription to €11.99 per month (from €10.99) in key European markets – France, Spain, Italy and the Netherlands. France went up to €10.99 in early 2022, along with Germany.
The UK individual subscription is unaffected. It went up 20% to £11.99 in the UK two years ago. However, the Family Plan will increase to £19.99 in the UK (up £2), along with a €2 rise in those European markets to €19.99.
“Since the creation of Deezer more than a decade and a half ago, we have been fully committed to recognizing the true value of music created by artists,” said Deezer in its latest announcement. “As a result, and to support continuous investment in innovation to deliver valuable support for artists and enhance fan experiences, Deezer has decided to adjust its prices.
“From September 21, 2023, prices are adjusted for all new premium and/or family subscriptions in France, UK, Spain, Italy and the Netherlands. For our current premium and family subscribers in these countries the changes in pricing will become effective at the earliest on the first billing period after October 24, 2023.”
While consumers may not welcome price increases at a time of rising inflation and interest rates, there was minimal churn in subscribers following Deezer’s early price increases.
The move will also be welcomed by labels, where senior execs have consistently noted that recorded music is undervalued compared to other forms of streamed entertainment.
“Music is still undervalued, especially when compared to other forms of entertainment like video,” said Warner Music Group CEO Robert Kyncl on an earnings call earlier this year. “Since 2011, the subscription price of Netflix's standard service has roughly doubled. Data shows that almost 80% of US households subscribe to at least three streaming video services. In contrast, the price of a music subscription has stayed the same since streaming was introduced over a decade ago. Most consumers subscribe to a single service that carries virtually all the music ever released.”