Hustler Words – Spotify is set to increase its premium subscription prices for users across a wide range of international markets. The music streaming giant announced Monday that subscribers in regions including the Middle East, Africa, Europe, Latin America, and the Asia-Pacific will soon see a bump in their monthly fees.
Impacted subscribers can expect to receive an email within the next month detailing the change, which will see the monthly cost rise from €10.99 to €11.99. This follows a similar move in the United States last year, where prices increased from $10.99 to $11.99, marking the second price hike in a relatively short period.
These price adjustments come on the heels of a disappointing earnings report last week, where Spotify fell short of revenue expectations, triggering an 11% drop in its stock price. During the subsequent earnings call with investors, CEO Daniel Ek expressed his dissatisfaction with the company’s current position, while simultaneously affirming his confidence in the future ambitions outlined for the business.
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Interestingly, Spotify’s shares saw a 5% increase in pre-market trading following the announcement of the price hikes, suggesting that investors may view the move as a necessary step towards improving profitability. However, it remains to be seen how subscribers will react to the increased costs, and whether the price hike will ultimately prove to be a successful strategy for Spotify in the long run.
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