Spotify song subscription is about to increase in price

Streaming media music service platform Spotify released its third quarter financial report as of September 30, 2020 on Thursday. According to the financial report, Spotify’s third-quarter revenue was US$2.32 billion, an increase of 14% compared to the same period last year; a loss of US$118 million, compared with a net profit of US$282 million in the same period last year; The stock lost 0.42 USD. After the earnings report was released, Spotify’s stock price plummeted by nearly 4%.

Unfortunately, this is bad news for users, as Spotify confirmed on its recent earnings call that they plan to increase prices.

Spotify CEO Daniel Ek said that because of the “enhanced content,” Spotify offers much greater value than before, which will help the company maintain higher prices.

“I believe that the increase in hourly value is the most reliable signal for us to determine when we can use price as leverage to develop our business.” Daniel Ek said.

Naijatechnews.com is informed that Spotify has tested higher subscription prices in some markets. For example, starting from October 1st, the Australian family plan will be increased from 17.99 Australian dollars to 18.99 Australian dollars for new users .

In the earnings conference call, Ek said that the company will “further expand the range of price increases” and announced that it will increase the price of family plans in markets such as Belgium, Switzerland, Bolivia, and Ecuador.

Recently, we have seen another major streaming service Netflix increase its subscription fees. Despite offering millions of podcasts and 58 original shows, unique content is not a major part of the Spotify experience.