Spotify has been hinting at price hikes for some time, and in advance of their next earnings call on Wednesday — which it has said is likely to see a dip in new paid subscriptions —the company raised the price of several subscriptions in the U.K. and parts of Europe, as well as its family plan in the U.S., which is seeing a $1 increase, from $14.99 to $15.99.
“Starting April 30, 2021, we are increasing the price of Premium Family so we can continue to bring you new content and features that you can enjoy as a family and as individuals,” the U.S. letter reads. “The price of Premium Family will change from $14.99/month to $15.99/month. Since you’re already a Premium Family subscriber, we’re giving you one additional month at the current price.This means the new price will become effective on your June billing date.” In a footnote, it explains that “The change is done in accordance with Spotify’s Terms and Conditions of Use.”
Single Spotify Premium subscriptions are apparently not affected.
However, the increases are more widespread in Europe. As noted by the Verge, in the U.K., Spotify Student is increasing from £4.99 to £5.99 per month, with a Duo subscription (for two people) rising from £12.99 to £13.99. Family accounts are going up twice what they are in the U.S. —from £14.99 to £16.99 a month.
Ireland and some other European countries will see both Student and Duo increasing by a euro each per month, to €5.99 and €12.99 per month respectively. The Family plan in Europe is also increasing from €14.99 to €17.99 per month. Some countries in Asia and South America will also see similar price increases, the Verge states
A rep for the company said in a statement: ““With more than 70 million tracks and 2.2 million podcasts, Spotify continues to innovate and invest in providing our listeners with greater value than ever before, including the best audio content and user experience. We offer a variety of subscription plans tailored to our users’ needs, and we occasionally update our prices to reflect local macroeconomic factors and meet market demands while offering an unparalleled service.”
The company had no further comment, although a source close to the situation tell PvNew that further price hikes are not planned in the U.S.
However, it seems likely that the company is shoring up for some less than optimal news in the coming earnings report. While streaming arguably has saved the music industry and Spotify is by far the world’s top paid-subscription service, with 155 million subscribers at its last announcement, any business with its rate of growth has to level off sometime — and that, combined with pandemic lockdown gradually lifting, may be leading the company to slower growth.
More information is likely to be revealed around the earnings call on Wednesday.
