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Said Ladegaillerie: “All of our deals with DSPs are revenue-share based, and in our view it is in the interest of the DSPs to maximise the value of their user base. “And because Universal is effectively a royalty over the overall streaming revenues, any pricing that the music providers would would flow directly as Universal’s revenues, and to the artists as well.”ĭenis Ladegaillerie, CEO of Paris-listed Believe, was also quizzed by analysts on streaming pricing on Believe’s Q1 earnings call last month – but put his entire faith in the likes of Spotify to make the right decisions, at the right time. And we think it’s very likely in the future that they may decide to some pricing.

And we think it’s very likely in the future that they may decide to some pricing.”Īdded Israel: “Given that inflation in the broader economy is running in the high single-digit rates, these companies have not pricing. “Given that inflation in the broader economy is running in the high single-digit rates, these companies have not pricing. “As a result, the hourly cost for streaming is very cheap the overall monthly subscription that you pay to Spotify, Apple Music or Amazon is very low relative to… a lot of other forms of entertainment overall.” Ryan Israel, Pershing Square partner, told Pershing’s investors last month: “One of the things that is unique about music streaming is our view is it is the lowest-cost, high-value form of entertainment that you can find. However, speaking to Warner’s investors on the firm’s calendar Q1 (fiscal Q2) 2022 earnings call, Levin added: “We continue to be encouraging of to look at pricing as an opportunity to improve economic performance of streaming.”Īnd then there’s Pershing Square Holdings, led by billionaire Bill Ackman.Ī 10% shareholder in Universal Music Group (alongside its affiliates) – and therefore, a weighty player in the global music business in its own right – Pershing Square is optimistic that further price rises are coming to music streaming’s biggest companies in the months ahead.

Last month, Eric Levin, CFO of Warner Music Group, noted that Spotify had already raised prices in certain markets throughout the past 12 months, connecting that trend to the fact that SPOT’s premium ARPU grew 3% YoY in Q1. “do we think in the mature markets can withstand pricing increases? We do.” But do we think in the mature markets can withstand pricing increases? We do.” Said Stringer: “That’s down to the DSPs, not us. Last week, Rob Stringer, Chairman of Sony Music Group, was quizzed at a Sony investor event on whether it was time for music streaming prices to rise higher.