Spotify has been hinting at price hikes for some time, and ahead of their next earnings call on Wednesday – which it says should see a drop in new paid subscriptions – the company has increased the price of several UK subscriptions and in some parts. Europe, as well as its family plan in the United States, which has seen a $ 1 increase from $ 14.99 to $ 15.99.
âFrom April 30, 2021, we are increasing the price of Premium Family so that we can continue to bring you new content and features that you can enjoy as a family and as individuals,â the US letter reads. âThe price of Premium Family will drop from $ 14.99 / month to $ 15.99 / month. Since you are already a Premium Family subscriber, we are giving you an additional month at the current rate. This means that the new price will go into effect on the June invoice date. In a footnote, he explains that âThe change is made in accordance with the Spotify Terms of Service.
One-time Spotify Premium subscriptions apparently aren’t affected.
However, the increases are more widespread in Europe. As reported by The Verge in the UK Spotify Student drops from Â£ 4.99 to Â£ 5.99 per month, with a Duo subscription (for two people) dropping from Â£ 12.99 to Â£ 13.99. Family accounts are growing twice as much as in the US – from Â£ 14.99 to Â£ 16.99 per month.
Ireland and some other European countries will see both Student and Duo increase by one euro each per month, to â¬ 5.99 and â¬ 12.99 per month respectively. The Family plan in Europe has also dropped from â¬ 14.99 to â¬ 17.99 per month. Some countries in Asia and South America will also see similar price increases, the Verge says.
A representative for the company said in a statement, âWith more than 70 million tracks and 2.2 million podcasts, Spotify continues to innovate and invest to deliver greater value to our listeners than ever before, including including the best audio content and the best user experience. We offer a variety of subscription plans tailored to the needs of our users, and we occasionally update our prices to reflect local macroeconomic factors and meet market demands while providing unparalleled service.
The company made no further comment, although a source familiar with the situation said Variety that further price increases are not expected in the United States
However, it seems likely that the company is preparing less than optimal news in the next earnings report. While streaming has arguably saved the music industry and Spotify is by far the world’s leading paid subscription service, with 155 million subscribers when it was last announced, any business with its growth rate must sometimes stabilize – and that, combined with the pandemic lockdown gradually lifting, can lead the business to slower growth.
More information is expected to be revealed around the results call on Wednesday.