New data reveals a concerning trend in U.S. music streaming: subscriber numbers are not just plateauing but declining in the world's largest music market. According to DMN Pro's latest analysis, Spotify Individual subscribers reached 23.96 million in September 2024, showing a decrease of approximately 431,000 subscribers from February 2024, despite being up by 300,000 year-over-year.

This decline isn't isolated to Spotify. Amazon Music has also experienced a decrease in domestic subscribers, even while maintaining its $9.99 monthly Individual plan for Prime members.

Despite these challenges, Spotify has shown growth in other areas:

• Total U.S. subscriber growth of 2.67 million across all tiers (September 2023-2024)
• Stock performance up 141% year-to-date at $454 per share
• Market cap reaching $91.2 billion, nearly double that of Universal Music Group

Spotify's strategy moving forward includes:

• Maintaining current Individual pricing at $11.99 (above Apple Music's $10.99)
• Potential adjustments to Family plan pricing
• Expanding advertising initiatives
• Launching a new "Deluxe" tier (estimated $18/month) featuring:
  • Enhanced audio quality
  • AI tools
  • Additional premium features

The company's focus on diversification beyond music and emphasis on profitability appears to be insulating it from broader industry concerns about subscription revenue growth slowdowns.

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