Spotify announces price hike. Who will be affected by the price revision?
Spotify has announced an increase in prices for using the service due to investments in new features and the intention to reach 1 billion users.
Spotify has announced an increase in prices for using the service due to investments in new features and the intention to reach 1 billion users.
According to the Financial Times, the price will increase from €10.99 to €11.99 in markets in South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region.
«The price increases will be accompanied by planned new services and features,» said Spotify co-president and chief commercial officer Alex Norstrom.
Price increases combined with cost-cutting measures in recent years helped Spotify achieve its first annual profit last year.
In early August, the company announced that the monthly cost of premium subscriptions would increase in some markets starting in September. The news sent the company’s stock price up nearly 10%.
«Price increases, price adjustments, etc. are part of our business toolbox, and we will do so when appropriate,» Norström said.
He added that Spotify will «continue to add value» for customers in parallel with the price increases and that «basically we want the consumer to win.»
Norström noted that people are switching to the service despite price increases, and that it is gaining a larger market share.
«A little over 3% of the world’s population regularly pays us… I think there’s still a lot of opportunity to grow the number of subscribers,» Norström noted.
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