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Why Spotify Continues to Reign Despite Increased Subscription Prices & Limited Quality
In theory, the Spotify business model might seem unreasonable. The music streaming titan recently upped its prices to $11.99 / £11.99 / AU$13.99 per month. This hike followed a controversial statement from Spotify's CEO, Daniel Ek, who claimed the ‘content' creation cost was close to zero. Additionally, the company has placed lyrics behind a paywall and is considering a $5 add-on for ‘lossless' music to the Premium plan. However, despite these issues, Spotify remains a dominant player in the streaming world.
Apple Music, a direct competitor, provides lossless audio in its basic $10.99 / £10.99/ AU$12.99 subscription. And, unlike Spotify, which offers lower quality music at 320kbps Ogg Vorbis file quality, Apple Music offers 24-bit/192kHz files for the same price. The value for money, when directly compared with Spotify, seems lacking.
Moreover, Apple Music also includes features like Dolby Atmos and Spatial Audio content, Apple Music Sing for karaoke enthusiasts, and Apple Music Classical for classical music lovers. Yet, despite these advantages, Spotify continues to flourish. Here’s why.
Spotify's Social Advantage
One significant factor contributing to Spotify's continued success is its social element. The platform has expertly tapped into our inherent desire to know ourselves better and to share our experiences. Who can resist creating a dream festival lineup poster, toying with an AI DJ, or checking Spotify Pie's genre pie chart?
Moreover, sharing Spotify content is quick and easy. As much as Apple Music has tried to match Spotify’s social network integration, it remains a step behind in terms of reach and visibility.
The First Love Effect and the Hassle of Switching
Many consider Spotify their ‘first love' in the realm of music streaming. However, those who are deeply engaged with their Spotify playlists would find it daunting to switch platforms. Potential switchers fear they'll lose their playlists and handpicked song selections — and neither Spotify nor Apple Music would facilitate a direct transfer.
Yes, third-party services can aid transfer, but they add an extra degree of hassle. As such, many users may prefer to stick with Spotify despite its perceived drawbacks.
Conclusion
Undoubtedly, Spotify faces stiff competition from rival music streaming platforms that offer more for less. Still, the power of habit, combined with the company’s effective social sharing features, keeps users loyal. Whether Spotify’s recent price hikes will prompt a mass migration to other platforms, however, remains to be seen.
You may like these related reads: Spotify vs Apple Music, Choosing a Music Streaming Service, Review of the Best Streaming Services.
