Spotify is hiking subscription prices because royalties are expensive as hell

The no. 1 streaming platform is cranking up subscription fees for the second time in a year. Users across five markets (including the UK and Australia) will reportedly pay up to $2 more a month after the hike goes into effect this month.

The US, Spotify’s biggest market, could also see hikes later this year but it’s yet to be determined how much. Rival Apple has also hiked prices for its music streaming service twice since 2022.

Spotify has a massive 236M subscribers, but the steamer rarely turns a profit since it pays about 70% of its sales in royalty fees. Last year, Spotify dished out a record $9B to the music industry. To help foot the bill, Spotify’s been expanding its non-music options: last year, it added audiobooks to its service for the first time and has spent billions bolstering its popular podcast biz.

70%

Percentage of Spotify sales funneled directly to the labels

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JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

JetBlue Airways raises bag fees as fuel prices soar

As CNBC reported, when one airline raises fees, others tend to follow.

JetBlue did not immediately respond to a request for comment.

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