Spotify to Raise Premium Subscription Prices in Key Markets
Spotify announced its decision to increase the monthly price of its premium individual subscription in various markets starting in September, a strategic move aimed at bolstering the Swedish streaming giant’s profit margins.
This price adjustment will affect subscribers in a broad range of regions, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. Spotify has stated that affected subscribers will receive an email notification detailing the price increase over the coming month.
This latest price hike aligns with the music streaming platform’s ongoing efforts to improve its financial performance. Previous price increases, coupled with extensive cost-cutting measures implemented in recent years, were instrumental in helping the company achieve its first annual profit in 2024.
Despite seeing an increase in monthly active users and premium subscribers during the second quarter, Spotify reported a loss during that period. This was primarily attributed to higher taxes related to employee salaries, which also impacted its third-quarter profit forecast.
In a bid to attract and retain subscribers, Spotify has been actively expanding its library of video content. A key initiative in this expansion is its partner program, designed to support podcast creators by offering them various monetisation options. CEO Daniel Ek previously informed Reuters that the program is witnessing a growing number of creators joining, leading to a substantial increase in video content available on the platform.
