- Spotify Increases Subscription Prices in Multiple Territories
- Company’s Pre-Tax Losses Grow Despite User Growth
- Spotify Follows Other Streaming Services in Raising Subscription Costs
Spotify is increasing the cost of its single-account premium plan for the first time since 2011 and is also increasing the cost of other services.
Monthly subscriptions in the United Kingdom will increase by £1 to £10.99 for an individual plan, £14.99 for a premium tandem plan, and £17.99 for a family plan.
Student plans remain priced at £5.99 per month.
It follows in the footsteps of other streaming services that have also increased subscription prices.
Similar price increases apply to the United States, Canada, and 49 additional territories.
Individual plans will increase in price from $9.99 to $10.99 (£8.57) in the United States.
The premium tandem service will increase to $14.99 from $12.99, the family plan will increase to $16.99 from $15.99, and the student plan will increase from $4.99 to $5.00.
In its most recent financial report, Spotify stated that between April and June, it added 36 million monthly active users, bringing the total to 551 million. 220 million of them pay for subscriptions.
However, the company’s pre-tax losses grew to €241m (£207.3m) during the quarter, compared to a loss of €90m during the same period the previous year. Sales increased to €3.1 billion but fell short of analysts’ expectations of €3.2 billion.
Spotify raised prices Monday “to help us continue to provide value to fans and artists on our platform.
Spotify stated that users “will be given a one-month grace period before the new price goes into effect unless they cancel before the end of the grace period.”
The music industry titan reduced its workforce by 6% in January, citing the need to increase efficiency.
The Duchess of Sussex’s podcast is among the high-profile departures as Spotify reduces its reliance on costly original content and high-profile celebrity signings, which have weighed on its bottom line.
Meghan and Prince Harry reportedly inked a $20m exclusive contract in 2020.
According to reports, the Duke and Duchess’ Archewell Audio severed ties with Spotify last month in a mutual decision.
A contract with the production company of Barack and Michelle Obama also expired last year.
In an April earnings call, Swedish business CEO Daniel Ek said the company wanted to boost prices in 2023.
Mr. Ek stated, “When the time is right, we will raise it, and that price increase will be moderate because we deliver a great deal of value to our customers.”
In 2021, prices for US family plans and UK student, duo, and family plans were already increased. Previously, individual subscriptions were unaffected.
Additionally, Apple Music, Peacock, Netflix, Max, and Paramount+ have recently increased their subscription costs.
The new Spotify Premium monthly fee is equivalent to that of Apple Music and Amazon Music.
The company will continue to offer a complimentary, advertising-supported plan.
