After several rumours suggesting a price rise was on the way, Spotify has confirmed that premium subscriber plans are going to be more expensive after Friday, 30 April. Chitter-chatter regarding the potential price hike started after the company was spotted surveying users about such a possibility earlier this year. However, the pricing changes aren't that straight forward to relay to you as they vary by region, naturally, as well as not being applied equally. Moreover, Spotify is expected to roll out a similar series of price increases in world regions not mentioned below (e.g. Asia, South America) soon.
The scale of the price rises for premium plans in the regions we know where they are coming into effect on Friday is as follows:
Student — £4.99 ➡ £5.99 (+£1)
Duo — £12.99 ➡ £13.99 (+£1)
Family — £14.99 ➡ £16.99 (+£2)
Student — €4.99 ➡ €5.99 (+€1)
Duo — €11.99 ➡ €12.99 (+€1)
Family — €14.99 ➡ €17.99 (+€3)
Family — $14.99 ➡ $15.99 (+$1)
Above you will see that with the prices applied the UK continues to be the most expensive Spotify music streaming market. For reference, today 1GBP = 1.15EUR = 1.39USD. In the USA customers there are lucky that the price rises are only going to be applied to the Family plan – and then it is the smallest increase of the three territories in this regard.
Existing users will be able to keep their plan price at its current level with a single month's grace period. Thus, if you are already signed up to one of the plans above you will see the price increase in June.
Spotify will release its latest set of quarterly financials on Thursday. The firm made a loss of €125 million last quarter, with average revenue per user down by 8 per cent, despite recent successes of streaming media/entertainment suppliers during the pandemic lockdowns.
We might hear more about the strategy behind these price increases but in its letters to subscribers (example above), the firm has stated that the extra cash will be used so it can "continue to bring you new content and features," to its service.
In related news, Spotify has launched a mini-player for Facebook, so you can share and listen to songs within the confines of that social media platform. It is also said to be introducing podcast subscriptions. Last but not least, the Swedish entrepreneur and Spotify founder Daniel Ek is making moves to buy Arsenal (London) football club.
Do you Spotify, and will the price rises make you consider changing to a rival service?