Regardless of having 320 million lively customers and 144 million paying prospects, Spotify remains to be shedding cash, having haemorrhaged a lack of 101 million Euros within the final quarter.
Sadly, that is unhealthy information for subscribers, as Spotify has confirmed on their most up-to-date Earnings Name that they plan to extend costs.
Spotify’s CEO Daniel Ek stated Spotify delivered a lot higher worth than earlier than attributable to “enhanced content material” which might assist the corporate maintain increased costs.
“I consider a rise in worth per hour is probably the most dependable sign we’ve got in figuring out after we are ready to make use of worth as a lever to develop our enterprise,” Daniel Ek stated.
Spotify has examined increased costs in some markets already, for instance growing the Household Plan pricing in Australia from AUS $17.99 to AUS $18.99 for brand new subscribers beginning October 1.
Within the Earnings Name Ek stated the corporate would “additional develop worth will increase”, asserting a worth improve for its Household Plan in Belgium, Switzerland, Bolivia, Ecuador, and different markets.
We’ve not too long ago seen one other main streaming service, Netflix, growing its subscription price. Regardless of providing tens of millions of podcasts and 58 unique reveals, distinctive content material doesn’t kind a significant a part of the Spotify expertise, nevertheless. Would our readers think about switching to another streaming expertise attributable to worth rises? Tell us within the feedback under.
by way of Neowin