Why Record Labels Are Suddenly Pushing Spotify and Apple Music to Copy Netflix

While video streaming platforms like Netflix and Disney+ have aggressively adjusted their models to maximize revenue, the music world has remained comparatively steady. Unfortunately, that might be about to change. According to a new report, major record labels have begun putting serious pressure on several of the music streaming giants, including Spotify and Apple Music.

One of the words no one ever wants to hear attached to pricing is "inflation," but that's the premise behind the reported issue. In short, music subscriptions are lagging behind inflation, leading to a push for these services to watch, learn and follow along with the TV streaming juggernauts.

The Netflix Gap: Why Labels Say Music Streaming Is Too Cheap

As viewers have watched the price of television streaming services like Netflix, Hulu, Disney+ and several others rise, the audio world has been far less significant. However, according to the Financial Times, the pressure is on for the likes of Spotify and Apple Music, as major record labels reportedly believe subscriptions "remain cheap."

"The major record labels have been pressing Spotify, Apple Music and other music-streaming platforms to increase their fees, arguing prices have lagged inflation and subscriptions remain cheap compared to video services such as Netflix," the report states.

As it explains, a current Spotify subscription in the United States costs $11.99, just two dollars higher than when the service initially launched 14 years ago. While that cost may feel modest in comparison to the ever-rising prices of so many other things of late, don't expect it to remain the same.

The Inflation Argument: Spotify & Apple Music Pressed for a Market Correction

While subscribers may view the current price of music streaming services like Spotify and Apple Music as reasonable, you may not want to get too comfortable. Not only has the writing been on the wall in recent months, with Spotify increasing prices in other countries such as the United Kingdom, Switzerland and Australia, but the Financial Times reports that Spotify's price increase is just around the corner.

According to the report, Spotify is set to raise prices in the United States for the first time since 2024, with the increase slated for the first quarter of 2026. It feels like it was simply a matter of time, but the pressure from labels, paired with the tremendous financial upside, was likely too much for Spotify to ignore.

It's anyone's guess what the Spotify price increase will look like, but here's the latest pricing rundown of several popular music streaming services:

• Spotify: $11.99/month
• Apple Music: $10.99/month
• YouTube Music Premium: $10.99/month
• Amazon Music Unlimited: $10.99/month ($9.99/month for Prime members)

Considering the report cites more than just Spotify feeling the pressure from record labels, it'll be interesting to see what happens with the three listed above, among others. If/when Spotify increases its monthly price, don't be surprised if the trio of Apple Music, YouTube Music and Amazon Music follow suit and raise their prices in the near future.

Even with a price increase, there's little debate that music streaming companies haven't been near the Netflix approach. Netflix, which rolled out its premium plan in 2013, has increased the price of that package, along with the basic package at least every other year from 2016 through 2022 (including one year with a switch to high-definition), as Flixed detailed.

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