Now, the company is beginning to roll out another aspect of the plan that Ek alluded to in those October 2020 remarks: has confirmed that Spotify will begin increasing prices on a number of plans in different markets, including the United States and Europe. In the U.S., Family Plan subscribers began receiving emails telling them that the price of their subscriptions will be increasing from $14.99 per month to $15.99 per month, as reflected in the June billing statement.Meanwhile, in the U.K.
“With more than 70 million tracks and 2.2 million podcasts, Spotify continues to innovate and invest in providing our listeners with greater value than ever before, including the best audio content and user experience," a spokesperson toldin a statement."We offer a variety of subscription plans tailored to our users’ needs, and we occasionally update our prices to reflect local macroeconomic factors and meet market demands while offering an unparalleled service.
The price increases have long been forecast, with Ek saying last October that"based on our maturity in certain markets and the increasing value we provide to our subscribers -- including enhanced content -- we’ve seen engagement and more specifically value per hour grow substantially over the past few years." He continued,"I believe an increase in value per hour is the most reliable signal we have in determining when we are able to use price as a lever to grow our business.
And increases may be an important piece of Spotify’s continued growth plan, as it looks to continue to grow revenue at a time when its licensing costs account for some 70% of the money it brings in.-- Spotify’s home turf -- in the summer of 2019, and their further implementation being presumably slow rolled by the onset of the pandemic.
In the U.S., Spotify hasn’t increased the price of its singular premium subscription from its $9.99/month rate in the decade since it launched, having preferred to introduce different types of plans and bundles at different price points to draw in new subscribers. Complicating matters is that its biggest competitors -- Apple Music in particular -- are also priced at $9.99/month for their music subscription with essentially the same catalog of music on offer.
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