cost Spotify Uk rip off

[spottyjohn58]

Why is Uk subscription £9.99 and in Europe 6.99 euro?

[LordRollin]

Hello @spottyjohn58! I haven't been able to find a clear cut answer on this, unfortunately, but the best I can come up with is that the pricing difference has to do with VAT and the general cost of living. Just as a pair of shoes are priced differently from country to country, so to is Spotify. It ranges from everything like the cost of doing business to licensing agreements within the individual country. 

If I find any more information on the subject I'll happily pass it on to you, but at this point it seems to be a collection of "reasons," with no clear-cut answer. Sorry for not having a better answer for you. All the best!

[spottyjohn58]

Thanks but I thought geo blocking was against EU law. Is Spotify confirmation with EU law? http://www.euractiv.com/section/digital/news/commission-to-propose-in-may-ending-geo-blocking-for-on...

[LordRollin]

Hey @spottyjohn58. My understanding of EU law is limited as I live in the States, but I do not believe that the same concept applies here. Just like a loaf of bread does not cost the same amount in every country, neither does Spotify, which, as I stated, depends on a lot of factors. From the article you linked it appears that geo-blocking itself has not been banned, but certain restrictions have been placed on it. To quote an example from the article, "legal restrictions on what can be sold online vary between member states and are not set to change either," which to me suggests that in specific circumstances, such as in specific licensing deals, for example, exceptions are made. It makes sense then to assume that if licensing  costs are more expensive in the UK, than somewhere else, the prices in the UK will be higher.

However, not being a Spotify employee I am not able to provide any more information on the topic as it's something beyond my understanding and I would not like to risk spreading misinformation. What've I've said so far is merely speculation from the little bit of research I've done. If you would like further clarification on the issue I can reach out to some staff and see if they can help answer this topic to greater depth.

[spottyjohn58]

Thank you.
I can understand distribution costs of a loaf of bread but not electronic media.
Maybe spotifys agile software model cannot cope with change from £ to $ or € and need to keep same number? As you are not a Spotify staff member which staff were you going to ask?

[LordRollin]

Ha, I don't think that's quite the case. I am not a Spotify employee, just another community member like yourself, but I have the means to escalate this topic to the attention of the moderators who are. I have gone ahead and passed this to them so that I may provide a better answer on the topic. 

[Natalie]

Hey @spottyjohn58,

Welcome to the Community! We'll be happy to try and clear things up 🙂

Each time Spotify launches in a new territory, we need to negotiate with that country’s record labels and other rights holders in relation to music licensing fees. We set our pricing at the level that we believe is fair for consumers, rights holders, and Spotify, while remaining a low-margin business.