Music streaming giant Spotify has implemented price hikes for its premium plans in various countries, including the US, UK, and Australia, aiming to improve profitability amid economic uncertainty.
In the US, the premium single plan will now cost $10.99 per month, a $1 increase, while other plans for duos, families, and students have also seen price adjustments.
Spotify has been focused on boosting margins through strategic measures, including hundreds of job cuts and restructuring its podcast unit, which had received substantial investment.
The company recently reported a significant rise in monthly active users, reaching 551 million during the April to June period, surpassing expectations. Additionally, premium subscribers grew by 17% year over year, reaching 220 million, contributing to the company’s record-high quarterly net addition performance.
Competing streaming services like Apple, Amazon, Tidal, and YouTube have also raised prices this year, responding to investor pressure to prioritize profitability over user growth.
Spotify had previously indicated its intention to raise prices in 2023 and had implemented price increases in 46 countries last year.
In the UK, individual plans rose by £1 per month, while Australia saw a $1 increase for individuals and $2 for duo and family plans.
The Swedish-based company is set to report its second-quarter results shortly, following its earlier workforce reduction as a result of expanding too quickly during the pandemic. Spotify’s co-founder and CEO, Daniel Ek, acknowledged being “too ambitious in investing ahead of our revenue growth.”
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