- Spotify has announced a price increase for its Premium subscription services, with some plans witnessing a 20% increase.
- The price hike affects not only U.S. but also several other countries including Canada, France, the UK, Mexico, and Australia.
- Despite a 5% drop in shares following the announcement, Spotify promises ongoing innovation and continues to add value to its users and artists.
Spotify broke the news this Monday about an impending hike in its Premium subscription costs, with some plans experiencing an increase of up to 20%, or an additional $2. The decision stems from the "evolving landscape" of the market since Spotify's advent, as disclosed in a recent blog post. The intent behind the change is to perpetuate the company's ability to provide value to its enthusiastic listeners and talented artists.
In the United States, the cost for Spotify's Premium Single is experiencing a dollar increase to $10.99, and the Premium Duo's cost is inflating from $12.99 to $14.99. The Premium Family package is taking a leap from $15.99 to $16.99, while the student offer is inching up to $5.99 from its former $4.99. This Monday morning saw a decline in Spotify shares by 5% following the announcement.
However, the U.S isn't the only country facing these changes. Other regions like Canada, France, the UK, Mexico, and Australia are also set to experience similar price shifts. To soften the blow, Spotify is offering a "one-month grace period" to existing subscribers, informing them via email about the revised pricing structure.
The company attributes these modifications to their ongoing platform growth and the need to keep innovating amidst fluctuating market conditions. Their explanation on the website states, "As we continue to grow our platform, we are updating our Premium prices."
The report on Spotify's quarterly earnings is due for release on the coming Tuesday at 6 a.m. ET.
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