Spotify Increases Premium Subscription Price
- tech360.tv
- 2 hours ago
- 1 min read
Spotify is set to raise the monthly price of its premium subscription plan by USD 1 to USD 12.99. This adjustment will affect users in the United States, Estonia, and Latvia.
The new pricing will take effect on consumers' billing dates starting in February. Subscribers will receive an email detailing the price adjustment.
The Swedish streaming organisation has relied on price increases in recent years to drive growth. Finance Chief Christian Luiga previously stated that raising prices in over 150 countries did not result in a significant rise in customer churn.
This indicates Spotify’s emphasis on retaining existing users. The company said the price change is part of its efforts to deliver a great user experience.
Spotify signalled that the increased revenue will be reinvested into improving the platform. It also aims to provide more support for creators.
Premium subscribers grew by 12% to 281 million in the third quarter. The organisation had 713 million monthly active users at the end of the period.
Spotify’s investment priorities centre on top-line growth and user acquisition in emerging markets. This includes expanding content to feature more podcasts, videos, and audiobooks.
The company recently expanded its monetisation program for creators. It also introduced new tools tailored for video podcasters.
Music videos were also made available to premium subscribers in the United States and Canada. This initiative seeks to attract more users and advertisers to the platform.
The monthly premium subscription price will increase by USD 1 to USD 12.99.
This price change impacts users in the United States, Estonia, and Latvia.
New pricing will commence with billing dates starting in February.
Source: REUTERS
