Spotify Raises Premium Subscription Prices
Spotify is raising the price of its premium subscriptions, bringing the audio streaming service in line with top competitors.
Under the new pricing structure, which took immediate effect, Premium Individual subscriptions will be $10.99 a month, up from the $9.99 level where they began in 2011. Premium Duo will be $14.99 (up $2), while Premium Family will be $16.99 and Premium Student will be $5.99, both up a dollar.
Similar hikes are in store in the UK and in several dozen other countries. Apple, Amazon, Tidal and YouTube have all increased prices in recent months, and Spotify has made no secret of its intent to follow suit.
Peacock Raising Prices For First Time Since 2020 Launch
Emerging Smart TV Firm Telly Unveils Partnerships With Spotify, Microsoft, Nielsen & More As It Starts To Ship Its Free 55-Inch Sets
“The market landscape has continued to evolve since we launched,” the company said in an announcement. “So that we can keep innovating, we are changing our premium prices across a number of markets around the world. These updates will help us continue to deliver value to fans and artists on our platform.”
Spotify will report second-quarter earnings on Tuesday morning. It has been steadily shifting away from high-priced talent deals toward the creator community as a source of podcast content.
The company is unusual for having built a robust business with both subscription and ad-supported plans operating in parallel. As of the most recent quarter, the company had 515 million monthly active users, about 40% of whom pay for premium subscriptions.
CEO Daniel Ek said on an April earnings call that the company would “like to raise prices in 2023,” but he said specific timing and rates would depend on the company’s negotiations with record labels.
Spotify raised prices in 46 global markets in 2022, Ek noted, and those markets still managed to keep growing.
“When the timing is right, we will raise it and that price increase will go down well because we’re delivering a lot of value for our customers,” the CEO said.
Must Read Stories
AOC Hits Picket Lines In NYC: “How Many Private Jets Does David Zaslav Need?”
Barbenheimer Fuels Massive $300M+ Weekend; $537M+ Global; Gerwig Sets Record
France Proposes New Media Law As Vincent Bolloré’s Influence Grows
Despite Sales Surge, AMC Ent. Could Run Out Of Cash, CEO Says After Court Ruling
Read More About:
Source: Read Full Article