YouTube price hike positive for labels and Spotify, says Deutsche Bank

Deutsche Bank says news reports suggesting YouTube Premium is increasing prices across several international countries for both individual and family plans are “another endorsement of the notion that there remains ample runway for music pricing upside.” This will also likely increase conviction that an Apple Music price increase could potentially hit in October, the analyst tells investors in a research note. Deutsche sees “clear positive read-throughs” for the music labels Warner Music (WMG) and Universal Music Group (UMGNF), saying their revenue share agreements with distributors should benefit from pricing upside. This is also a clear positive for Spotify (SPOT), as steady price increases by its competitors could imply more pricing upside, adds the firm.