Spotify isn’t performed tweaking its costs. In keeping with Alex Norström, the corporate’s co-president and enterprise chief, elevating subscription prices is changing into a traditional a part of how Spotify does enterprise, not only a once-in-a-while transfer.
Beginning in September, the Premium particular person plan will go up by a few euro—from €10.99 to €11.99 (round $14 USD)—in areas like Europe, Latin America, the Center East, Africa, and components of Asia. It’s a small bounce, however it exhibits that Spotify is snug adjusting costs because it invests in new options.
And that’s the important thing: Spotify doesn’t need folks to really feel like they’re paying extra for a similar service. The platform has been rolling out issues like audiobook and podcast expansions, personalised instruments like an AI DJ, and even testing the concept of a “superfan” tier for individuals who need unique content material and are keen to pay additional for it.
Numbers-wise, Spotify remains to be rising. The service has 276 million paying subscribers and nearly 700 million month-to-month customers in complete. That sounds huge, however when you think about the scale of the worldwide inhabitants, it’s nonetheless only a tiny slice. Norström thinks hitting one billion Premium subscribers isn’t a wild dream—it’s one thing the corporate is actively chasing.
Spotify’s larger play is what it calls “ubiquity,” which means the app needs to be all over the place you may need to pay attention: in your cellphone, in your automobile, by way of your sensible speaker, and extra.
So whereas the month-to-month invoice may creep up a bit right here and there, Spotify’s message is evident: you’ll be getting extra options, extra content material, and extra methods to pay attention—and the corporate believes that trade-off will hold hundreds of thousands of individuals (and perhaps in the future a billion) sticking round.
