Spotify to Increase Prices for Its Premium Subscription

At its third-quarter earnings name, Spotify CEO and co-founder Daniel Ek hinted on the firm’s plans to extend the costs of its subscription plans. The information comes at a time when the streaming service has 320 million month-to-month lively customers and 144 million Premium subscribers.

The worth hike might be focused at markets the place the corporate has dominance within the music streaming house. This is especially pushed by the elevated worth provided to its subscribers by “enhanced content”, which incorporates unique podcast reveals like The Michelle Obama Podcast and The Joe Rogan Experience.

Through a data-driven method, Spotify says it has seen that customers are prepared to pay extra in return for the elevated worth proposition. In reality, the corporate not too long ago elevated costs in Australia, Belgium, Switzerland, Bolivia, Peru, Ecuador, and Colombia.

“While it’s still early, initial results indicate that in markets where we’ve tested increased prices, our users believe that Spotify remains an exceptional value and they have shown a willingness to pay more for our service. So as a result, you will see us further expand price increases, especially in places where we’re well-positioned against the competition and our value per hour is high,” stated Daniel Ek.

To recoup from a reported lack of €101 million, Spotify appears to be taking viable steps to focus its consideration on rising revenue margins. However, we must wait to see if Spotify has plans to extend the worth in price-conscious aggressive markets, the place the corporate is going through a justifiable share of competitors from native gamers equivalent to Gaana and JioSaavn.