Kroll

The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers. An abbreviated version of the newsletter is published online. Over the last decade, streaming platforms have mostly held prices steady while racking up over half a billion subscribers globally. But for years, music executives have questioned subscription services’ decision to sacrifice higher prices — and with them higher royalties to labels and artists — to gain more subscribers. Music streaming is following an age-old business tactic: launch at an affordable price, gain customers and, once people are hooked, raise prices. The question is when to raise prices. Too early a raise could risk alienating subscribers, while one that’s too late risks leaving revenue on the table once su...