Spotify has announced that it will be increasing the cost of its Premium plans in several regions around the world. The music streaming service says customers will soon receive an email explaining the changes. While Spotify did not share the full list of affected countries, the price hike will touch users across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.
New Costs in Parts of Europe
In some European Union markets, the change has already begun. For example, Premium subscriptions in Spain, Italy, and Portugal have gone up by one euro. This means the standard Premium plan in these countries now starts at €11.99 per month. Spotify has confirmed that existing subscribers in these areas will see the higher price in their next billing cycle.
Why Spotify Is Making the Change
Spotify did not give a detailed explanation for this latest increase, but it comes at a time when the company is still growing its paying user base. In its recent financial update for the second quarter of the year, Spotify reported that it now has 276 million Premium subscribers worldwide. This is more than before, showing that more people are paying for the service despite earlier price changes.
However, the company also admitted that it missed its earnings goal for the quarter by $100 million. While that may seem like a small amount compared to its overall revenue, it is still a gap the business will want to close. Raising subscription prices is one of the most direct ways to boost income, especially when user numbers are already high.
What It Means for Users
This price change implemented by Spotify in the affected regions listed above might not be significant to some users. The increase might be little in terms of figures, but could compound as time goes on. A one-euro rise each month, which means an extra €12 a year, might not mean much for new subscribers, but for long-time subscribers, this can make a huge difference.
Some customers may choose to stay with Spotify, while others might go to rival services like Apple Music, YouTube Music, or Amazon Music to see if they can get a better deal.
This isn’t the first time Spotify has hiked the price for its premium subscription, and it will certainly not be the last. But this move is in a bid to compete with other streaming platforms, stay relevant while also remaining profitable. The premium users of Spotify will just have to prepare for the new price coming next month.
