Spotify's Market Cap Value Has Fallen

Has Its Value Peaked?

MUSIC BUSINESS WORLD reports an intriguing trend is starting to surface: music streaming subscriptions are typically far cheaper in emerging markets than they are in the US and EUROPE, but hardware built to play that music – often from the very same companies running the music services – is significantly more expensive.

In their write-up they said that a major record company executive, speaking in private this week, raises an interesting point. Obviously, music is a unique case study: with the twin challenges of rampant free YOUTUBE and piracy, convincing consumers in emerging markets like INDIA, BRAZIL or RUSSIA to pay any money for a streaming subscription is no easy feat. (RUSSIA, incidentally, is going to be SPOTIFY’s next major territory launch, MBW is told by reliable sources.)

Yet one piece of news from this week reiterates our mystery executive’s point: AMAZON ECHO’s launch in BRAZIL.

The standard prices for AMAZON’s three latest-model ECHO hardware devices (ECHO DOT, AMAZON ECHO and ECHO SHOW 5) range from R$349 to R$699 (two will launch with introductory discounts) – the equivalent of approximately US $85 to $169. Yet in the States, the same devices cost between $49.99 and $89.99.

However, a standard individual plan to AMAZON’s premium music streaming service, AMAZON MUSIC UNLIMITED, which launched in BRAZIL three weeks ago, costs R$16.90 (the equivalent of US $4.16) per month in the SOUTH AMERICAN territory, or R$169.00 (US $41.63) for a whole year.

Read the full story here.

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