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CEO says Spotify’s price has gone up



Fitbit Sensory Review Spotify Music App

  • Today, during the earnings call, Spotify’s CEO revealed that Spotify’s price increase is in progress.
  • The company did not disclose many details, but it is certain that price increases are coming.
  • Spotify has increased the price of home plans in certain markets around the world.

Music streaming service Spotify held a quarterly earnings conference call today (via TechCrunch). The company has good news: Since the end of the second quarter, the number of active users and paying subscribers has increased.

However, the company failed to increase sales and revenue in the same period. Spotify’s stock price fell immediately. Therefore, Spotify’s co-founder and CEO David Ek said that Spotify prices will definitely rise in the near future.

Spotify price increase: why, when and where?

By raising prices, Spotify can increase revenue without increasing the number of active users. It may continue to expand its user base, but it is clear that this does not always increase revenue. This is the biggest reason why it is necessary to raise prices.

Ek did not disclose any details about when it might happen or in which markets. He did say this: “I believe that the increase in hourly value is the most reliable signal for us to determine when we can develop our business by price.”

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Ek refers to whether users are using Spotify every day. If so, they will get more value from the product, so they should pay more. Considering that Spotify now offers millions of podcasts and hosts dozens of exclusive shows, it is easy to assume that consumer value has increased.

As for what may happen, it is not surprising if the United States is included. Global Spotify prices have increased in countries such as Belgium, Switzerland, Bolivia, Peru, Australia, Ecuador and Colombia. These additions are for family plans and other plans with multiple users.

Most importantly, current Spotify subscribers should plan to raise prices soon. This is inevitable.


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