Tuesday, 25 July 2023, Bengaluru, India
A report that originally appeared over the weekend that Spotify’s premium subscriptions would increase in price has finally been confirmed.
The well-known music streaming service has announced price increases for its most popular premium ad-free subscription plan in the United States from $9.99 to $10.99 per month and its Duo plan from $12 to $14.99 per month. Around 500 million customers utilize the company’s services globally, and 40% subscribe to subscription programs. Additionally, the family plan cost has increased by $1 to $16.99 per month, and the cost of the student plan has increased by $1 to $5.99 per month.
Spotify has announced plans to increase pricing in several European Union (E.U.) nations, the United Kingdom, South and Central America, Asia, and Oceania. In addition to the American market, the following areas have seen a considerable increase in subscribers.
The company still needs to provide pricing for these markets, but it has claimed that any affected customers will start receiving letters today confirming their new rates. However, their neighborhood landing sites have begun to show the most recent costs. Consumers across the Eurozone see one-euro price rises for the individual premium plan. Still, the new charge will differ depending on where you live because the region’s rates are already erratic. For instance, the cost has increased by €1 to €11.99 per month in Finland and by €10.99 in France. Germany, on the other hand, seems to be maintaining its €9.99 monthly fee. In the U.K., premium customers will additionally pay an additional £1 on top of the $10.99 monthly charge.
The price increase is notable because Spotify has maintained its basic premium pricing plan in many significant regions, including the U.S. and compelling portions of Europe, unlike streaming competitors like Netflix, who frequently change their pricing tiers.
The Swedish company’s quest for ongoing profitability and, eventually, maintaining the satisfaction of its shareholders can be accomplished simply by raising prices. The fact that today’s statement comes one day before Spotify releases its Q2 2023 financial results is also essential.
With today’s news, Spotify will be on par with Apple, its main rival in the music streaming market, whose premium subscription fee was raised from $9.99 to $10.99 in October.
Spotify unveiled a new membership program earlier this year that gives users access to “lossless” music of more excellent quality. Later this year, this program will be made available in the United States for a $19.99 monthly fee.
[Source of Information : Techcrunch.com]
