The company had no further comment, although a source close to the situation tell Variety that further price hikes are not planned in the U.S.
#Spotify subscription prices update
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.” Some countries in Asia and South America will also see similar price increases, the Verge statesĪ 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. The Family plan in Europe is also increasing from €14.99 to €17.99 per 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. Family accounts are going up twice what they are in the U.S. 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. However, the increases are more widespread in Europe. Since Spotify and artists’ rights holders share in the same pool of money, our incentives are totally aligned: We both want to generate as much revenue from listeners and advertisers as possible.Single Spotify Premium subscriptions are apparently not affected. “That said, Spotify is always evaluating pricing in each of our markets, and we’ve increased pricing in a number of them. Raising prices is a fine balance - we don’t want to drive people back to piracy or unmonetized solutions. The cost of a subscription is not an insignificant amount for many. On Spotify’s recently-launched Loud & Clear website, the company directly answers the question: Why doesn’t Spotify just charge listeners more? It writes: “Spotify persuaded listeners to pay a set price for music monthly, shifting fans away from piracy. For example, in the U.S., $5 spent on Spotify in its launch year of 2011 is today (2021) worth just $4.25, according to reverse inflation. Worth noting: Spotify’s ARPU changes (as illustrated above) don’t take into account inflation. Music Business Worldwide research suggests that the global ARPU of premium music streaming services fell by around 8 percent last year in the U.S., we estimate, it fell by 8.4 percent to $7.74 per month. SPOT says in its shareholders letter that it has already raised prices across a variety of its Premium offerings in over 30 markets, adding that “early results have shown no material impacts to gross intake or cancellation rates.” Debates over whether Spotify should raise its prices yet higher continue to rage in the music industry. “Product mix” essentially means discounted bundle deals, including SPOT’s Student, Family, and Duo Plans – the prices of which it’s now set to slightly raise in the aforementioned handful of major markets. Q1 2021’s €4.12 per month figure was the equivalent of USD $5.01 per month period based on average exchange rates in the quarterly period.
In Spotify’s prior quarter (Q4 2020), the firm’s ARPU stood at €4.26, while in the prior year quarter (Q1 2020), it was €4.42. Spotify also announced on Wednesday that it surpassed 158 million paying subscribers worldwide at the close of Q1.Īccording to Spotify’s new results, its monthly Premium subscriber ARPU in Q1 stood at just €4.12, down 7 percent year-on-year, but down 1 percent YoY in constant currency.
#Spotify subscription prices full
Fresh figures released by Spotify as part of its Q1 2021 results reveal the full extent of the price erosion that has hit Spotify’s premium ARPU (Average Revenue Per User) in the past few years. Then on Wednesday, April 28th, new information shows why the time had finally come for Spotify to make this move. The new prices will come into effect from the end of this month for new users, and will begin affecting existing subscribers in June. In Brazil, the prices for Spotify’s full portfolio - including individual subs - will be increased. On Monday, April 26th, Spotify announced small price increases for various subscription products in 12 additional markets, including the United States (Family Plan), and the United Kingdom (Student, Family, and Duo Plans).
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