Ready for a pricier Spotify Premium?
Billboard reported on Tuesday, April 25 that the music platform is “ready to raise prices” of its monthly subscription plans following its increase in revenues and users.
“I think we are ready to raise prices, I think we have the ability to do that,” CEO Daniel Ek said during a conference call about their earnings for the first quarter. The final decision, however, would still depend on negotiations with major stakeholders in the music industry.
According to Billboard, Spotify reported 3 billion euros (P184 billion) in revenues in the first quarter of 2023. This marked a 14% growth from last year, “but slightly lower than the company expected as macroeconomic fears crimped Spotify’s advertising business.”
The firm has also seen a 22% year-over-year increase in monthly average users.
Billboard stated that Ek has been asked over and over again about the possibility of a price hike since 2022. While they did increase their prices only in 46 locations and markets last year, the streaming service said they “feel really good” about their ability to do so over time because they could back it up with data showing that such a move “does not drive away a significant number of customers.”
The Spotify CEO noted that pricier premium plans do not cover a huge chunk of their strategy at the moment. “Instead, we’re working with our label partners to work, to figure out what’s the best opportunity to do that—and that’s a more complex trade.”
“When the timing’s right, we will raise it,” he added.
Spotify was launched in 2006. Its current monthly subscription plans in the Philippines include student (P75), premium (P149), premium duo (P185), and family (P214).