Spotify Plans Additional Price Hike To Its Subscription Fees
Spotify, the industry leader in music streaming, is allegedly getting ready to raise prices even more and change its income model.
Numerous media publications, such as Bloomberg and the World Street Journal, have reported that Spotify intends to increase subscription fees by the end of April in five major nations, including the UK, Australia, and Pakistan. Later this year, pricing increases are expected to be implemented in the US.
Individual subscription plans will now cost $1 more per month, while Duo and Family subscriptions will see increases of $2 per month. The company is contemplating more increases in order to pursue profitability, a target that has not been achieved since the company’s 2018 stock market debut.
The price hikes are projected to take place in 2023, coinciding with a significant rise in paying members. Spotify’s CFO, Paul Vogel, was pleased with the company’s performance during a financial call in the end of last year. He noted that the churn rate was in line with forecasts and attributed excellent revenue growth to the company’s increasing subscriptions.
Spotify projects reaching 618 million monthly active users, $194 million in operational profitability, and $3.8 billion in total revenue in its Q1 2024 projection. Furthermore, there have been rumors that Spotify may launch a “Supremium” tier, which is said to include AI-generated bespoke playlists and 24-bit lossless audio.
These changes coincide with significant adjustments made to Spotify’s royalty payment procedures with the goal of creating an artist-centric model. These adjustments include imposing minimum stream thresholds and stepping up efforts to counteract fake streaming.
Spotify Announces Global Price Hike for Premium Subscriptions
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