Spotify raises subscription prices
In a significant move affecting its global user base, Spotify has announced an increase in its premium subscription prices across multiple key markets. The streaming giant revealed on Monday that users in the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region will soon experience a higher monthly fee. This announcement was made via their official newsroom.
Over the next month, impacted subscribers will be notified via email, informing them of the adjustment from the current €10.99 to a new rate of €11.99 per month.
This latest price adjustment follows a similar pattern observed last year, when Spotify raised its U.S. subscription cost from $10.99 to $11.99. As reported by TechCrunch, this marked the second such increase for U.S. users within a year, signaling a trend in the company’s pricing strategy.
The timing of these global price hikes coincides with Spotify’s recent financial performance. Last week, as reported by CNBC, the company reported a revenue miss in its earnings, which led to an 11% drop in its stock price.
During the subsequent earnings call, CEO Daniel Ek acknowledged the company’s current position, stating he is “unhappy with where [Spotify is] today,” but expressed confidence in its future ambitions, according to reports from various outlets including mediacat.uk.
Despite the financial headwinds, Spotify’s announcement of price increases appears to have been met positively by the market. As reported by Bloomberg, the company’s shares saw a notable increase of 5% in premarket trading following the news.
