Spotify announced on Monday that it is raising the cost of its premium membership in the US for the first time in 12 years. It added that the increased prices are in response to the evolving “market scenario” and care spotify cash so it “May the innovation continue,” the company said in a statement. Press release,
Premium customers’ plans will increase by $1, with the Single plan costing $10.99, the Duo plan costing $14.99, the Family plan costing $16.99, and the Student plan costing $5.99. Spotify’s premium streaming option allows customers to listen to an unlimited amount of ad-free music, and so far it remains the latest heist among music streaming service providers, who have already begun demanding more.
Apple was the first major provider to raise the standard subscription price in October last year, followed by Amazon in January and youtube music premium Last week. In all cases, the subscription cost increased by $1, bringing the Personal plans from $9.99 to $10.99.
Although this is Spotify’s first increase in premium membership, other subscription tiers have increased in price over the years. In 2021, Spotify increased the Family plan from $14.99 to $15.99 in the US, and raised the prices of the Student, Duo and Family plans in the UK.
Robert Kinkl, chief executive of Warner Music, said during a call with investors in May that raising the cost of a premium subscription by just $1 would generate $1 billion in revenue for Spotify: wall street journal informed of. “The subscription services that raised prices have acted in a financially prudent manner — for themselves, their shareholders and the creative community — and there is no sign of increased churn,” he added.
Then comes Spotify’s move to raise its prices The company cut its workforce by around 6% earlier this year. Spotify CEO and co-founder Daniel Ek said in a memo to employees at a time when the company was forced to cut costs due to necessary “organisational changes”, and the decisionStrive to bring greater efficiency, control costs and speed up decision making.
Soon after, one indicated a price hike in April. call income, Asking if membership costs less Spotify profited, with one saying it helped marginally, but it’s not the company’s primary strategy.
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