- Spotify is increasing its subscription prices in regions outside the US, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific.
- The price hike will come in effect next month, and users will receive an email with updated pricing details.
- The change seems to be driven by Spotify's quarterly earnings report, which showed a decline in profit.
Spotify has just announced that it will raise the price of its paid subscription tier in several regions outside of the US, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific.
Spotify in its latest blog post said that subscribers will see an increase in prices starting next month. Users will receive an email with details about the updated pricing. Here is a snapshot of the email Spotify will be sending over to its Premium members.
The email shows a €1 increase in monthly pricing, which was already implemented in regions like Spain, Italy, and Portugal last July. However, it is not clear yet how it would translate for other countries, especially the ones in Asia and the Middle East.
The price increase is suspected to come as a result of Spotify’s quarterly earnings report. While the platform did see a growth in paid subscribers, its profit fell behind what analysts had predicted. As a result, Spotify’s stock price fell by 11.5 percent, slashing $16 billion from the music streaming giant’s market cap.
The Music Business asked Spotify CEO Daniel Ek why the company is not increasing its subscription prices more often, to which he replied that the company wants to retain its users rather than focusing on short-term gains. So far, the US has not been impacted by the increased prices, but it is likely that Spotify might update prices for its Premium tier in the US sometime later this year.
