According to the report, Spotify will raise its standard subscription rate by $1 next week, bringing the monthly cost from $9.99 to $10.99.
Pretty much inevitable I’ve been amazed they went this long. $10 just does not seem sustainable.
Im fairly sure they manage because they have so many subscriptions from people that barely use it.
They basically pay out per song played - and server costs are also largely dependent on active users. So they balance out a very active person that might incur 15$ in cost with 5 inactive people that incur not even a dollar.
I guess I don’t really know exactly how their model works, but I’m guessing that is only for independent artists. I bet they paid big bucks to the major record labels.