Barclays rates barclays digital barclay cd player with rates up to 20 percent
Barclays has boosted the rate it charges consumers for its digital music players, saying it is a smarter way to sell music to customers than charging the full retail price.
The bank on Tuesday raised the rate to 20.5 percent from 15 percent for its music players and introduced a new tier of service called Barclays Cloud that lets users buy a $10-per-month subscription for $9.99.
Barclays has said its digital players can be downloaded from its website or from iTunes, Amazon, Spotify and other digital retailers, and are available to rent.
The company also launched a new product line, the Barclays CD Player Plus, which costs $9 a month, or $1,500 a year.
The new offering is similar to Spotify’s Spotify Premium subscription, which charges $12 a month or $7,500 for a year of unlimited access to the service.
“Barclays Cloud is the perfect digital solution for people who want to keep up with all their music, but are concerned about whether or not they’ll be able to afford the full $150-per year of music they’ll pay for on Spotify,” said Doug Calkins, Barclays’ head of music and media, in a statement.
“We are taking the next step in our partnership with Spotify and are committed to making our services as affordable as possible for consumers.”
The bank’s pricing announcement comes amid ongoing debate over whether the rise in music costs has led consumers to cut back on spending, or whether consumers are spending less because they are willing to pay higher prices for music.
In April, the Consumer Price Index (CPI) for April rose by 0.3 percent to 1,067.3, the highest level since October 2015.
Last month, the index rose 0.4 percent to 2,037.6, the biggest monthly gain since December 2015.
The rise in prices for digital music, and particularly the price of a Spotify subscription, has prompted some listeners to rethink how much they should spend on music, even as music companies have struggled to make up lost sales from the rise of streaming services like Apple Music.
The median price of Spotify’s subscription for an individual, who buys a monthly subscription for 10 songs, is $3,836, according to data from Nielsen SoundScan.
That’s up from $2,908 for an average household in May.
Last year, Spotify reported revenue of $11.7 billion, according the company.
Barclays said in its statement that it plans to expand its cloud service and offer more music streaming options to its customers in the coming months.
“With Spotify and its service offering now available for the majority of customers, we expect that it will become increasingly more attractive for consumers to purchase digital music from Barclays Cloud and continue to be a great place to invest in our business,” the bank said.
Barclays will introduce new tiers of service in the future, it added.