Despite having 320 million active users and 144 million paying customers, Spotify is still losing money, having haemorrhaged a loss of 101 million Euros in the last quarter.
Unfortunately, this is bad news for subscribers, as Spotify has confirmed on their most recent Earnings Call that they plan to increase prices.
Spotify’s CEO Daniel Ek said Spotify delivered much greater value than before due to “enhanced content” which would help the company sustain higher prices.
“I believe an increase in value per hour is the most reliable signal we have in determining when we are able to use price as a lever to grow our business,” Daniel Ek said.
Spotify has tested higher prices in some markets already, for example increasing the Family Plan pricing in Australia from AUS $17.99 to AUS $18.99 for new subscribers starting October 1.
In the Earnings Call Ek said the company would “further expand price increases”, announcing a price increase for its Family Plan in Belgium, Switzerland, Bolivia, Ecuador, and other markets.
We have recently seen another major streaming service, Netflix, increasing its subscription fee. Despite offering millions of podcasts and 58 original shows, unique content does not form a major part of the Spotify experience, however. Would our readers consider switching to an alternative streaming experience due to price rises? Let us know in the comments below.