Spotifyannounced todaythat it will be “adjusting” the prices for all its Premium plans in the United States. The streaming platform, based in Sweden, had just raised its prices last summer for the first time since launching in the US back in 2011. “So that we can continue to invest in and innovate on our product features and bring users the best experience, we occasionally update our prices,” Spotify said.
Spotify will now be increasing the monthly subscription cost of its Individual plan by $1, its Duo plan by $2, and its Family plan by $3. The only premium plan in the US not receiving a price hike is its student plan, which will remain at $6 per month.
It’s a time of change at Spotify
The company has spent the last few years reinventing itself
Spotify HiFi Platinum plan could be on its way soon
The upgraded plan will offer lossless audio for those who want it.
As recently as last year, Spotify had been investing heavily in podcasts, inking exclusive deals worth tens or even hundreds of millions of dollars with the likes of Joe Rogan and Prince Harry. While exclusive deals may not be seen as often in the future, given their high cost, Podcasts still play a key role in Spotify’s drive for increased profitability. Of the top 25 podcasts on Spotify in the US, nine are Spotify originals. The company has recently reported a substantial gain in gross margins, aided by increased profitability in both podcasting and music. In their last earnings report, Spotify shared that “Podcast advertising revenue grew faster than music, driven by significant growth in impressions sold across Original and Licensed podcasts.”
So now, for the second time in less than 12 months, Spotify is altering the deal. Let us pray they don’t alter it any further.
