June 7th | Spotify pricing, Merlin Connect, Canadian DSP tax

Welcome back to another edition of the Indie Insider, your go-to newsletter for all the latest happenings in the independent music industry. Today is Friday, June 7th which meansA2IM (American Association of Independent Music)'s Indie Week is already next week. If you’ve never been to Indie Week, I highly recommend attending. It’s a great place to do some serious networking and to immerse yourself in the conversations that are impacting music businesses of all sizes. If you’re running a label, and you’re not an A2IM member, drop whatever it is that you’re doing, check out their website, and get signed up. It’s a great organization that advocates for independent music at all levels.

I’ll be in NYC for the conference Sunday through Thursday, so if you want to learn more about howHabitat Financialcan help you save money and time on financial operations tasks like royalty processing and payments, you canuse this linkto set up a meeting with me. Otherwise, drop me a line and we’ll figure out a time to meet in NY. Labels attending A2IM are eligible for a 6-month free trial of Habitat Financial.

Spotify to Raise Prices While Touting Customer Loyalty

Spotifyis hiking its Premium subscription prices in the U.S. once again. Starting next month, individual plans will go up by $1 to $11.99, Duo by $2 to $16.99, and Family by $3 to $19.99. The Student plan will stay put at $5.99. This is Spotify's second price increase in the past year, aligning with its global strategy to bolster revenue amid rising operational costs and a push toward profitability. At this time it seems unlikely that artists will see any increase in payments as there has been no announcement that Spotify plans to increase the size of the royalty pool that they use to compensate rights-holders.

Despite these price hikes, Spotify is banking on customer loyalty to minimize churn. According to a recentAntennastudy, Spotify users are the least likely to cancel their subscriptions compared to users of other major streaming services. Less than 1.5% of Spotify subscribers canceled in April, a testament to the platform's strong user retention despite big-tech-owned DSPs offering cheaper plans that they can afford to operate at a loss. In real life, we will have to wait and see how these most recent hikes affect user attrition—on Wall Street, however, investors seemed to welcome the decision as Spotify’s stock price increased two percent in the day following the announcement.

Monitor Their Earnings:Keep an eye on stories related to Spotify’s earnings or userbase—we’ll make sure you’re up to date here at Indie Insider.Engage Your Audience:Now is a good time to strengthen your connection with your fans on platforms other than Spotify. Encourage them to subscribe to an email list and and engage with your content on social media.Explore Alternatives:Consider diversifying your presence on other streaming platforms to hedge against any potential subscriber loss from Spotify.

Monitor Their Earnings:Keep an eye on stories related to Spotify’s earnings or userbase—we’ll make sure you’re up to date here at Indie Insider.

Engage Your Audience:Now is a good time to strengthen your connection with your fans on platforms other than Spotify. Encourage them to subscribe to an email list and and engage with your content on social media.

Explore Alternatives:Consider diversifying your presence on other streaming platforms to hedge against any potential subscriber loss from Spotify.

DSPs Fight Back Against a 5% Canadian Tax That Supports Content Creators

Canada’s new policy mandating a 5% revenue contribution from digital service providers (DSPs) to support Canadian content creators has stirred quite the controversy in a country known for its robust grant funding programs for musicians of every stripe. Streaming services like Spotify, Apple Music, and Amazon Music are up in arms, calling it a discriminatory tax. This tax, effective September 1, 2024, will funnel money into various Canadian content programs, including support for local radio, Indigenous music, and new local news initiatives.

Get Involved:Engage with local music associations and advocacy groups to ensure your voice is heard in these discussions.

Merlin Launches ‘Merlin Connect’ to Provide Tech Platforms with Licensed Indie Music

Merlin, the digital music licensing agency representing independent labels, has launched Merlin Connect. This initiative aims to provide emerging tech platforms with access to licensed indie music, addressing the complexities and high costs of music licensing. This move is particularly significant given the growing concerns around AI-generated music and its potential impact on original artistry.

Merlin Connect is specifically set to address the influx of sub-par AI generated music that requires limited licensing for commercial use. The goal is to steer tech platforms away from artificial music and towards music created by humans. Like many tools that address big sweeping changes in user behavior, Merlin Connect aims to make it easier than ever before to license music. This initiative could help independent music gain more visibility in innovative tech spaces, including apps and services that might not traditionally focus on music.

Join Merlin:If your label isn’t already a member, consider joining Merlin to benefit from their extensive licensing network.Explore New Platforms:Be open to new and emerging tech platforms that might use Merlin Connect. These could offer new ways to monetize your music.Stay Innovative:Keep creating and experimenting with your music to make it attractive for these new tech applications, ensuring you stand out in a rapidly evolving digital landscape.

Join Merlin:If your label isn’t already a member, consider joining Merlin to benefit from their extensive licensing network.

Explore New Platforms:Be open to new and emerging tech platforms that might use Merlin Connect. These could offer new ways to monetize your music.

Stay Innovative:Keep creating and experimenting with your music to make it attractive for these new tech applications, ensuring you stand out in a rapidly evolving digital landscape.

That’s all for this month, folks! Stay tuned for more updates and feel free to reach out if you’re in New York—I’d love to connect over a coffee or a drink.