Spotify increases prices for premium subscription in US
(MENAFN) music streaming giant Spotify announced a recalibration of its premium subscription prices for users in the United States, marking its second price adjustment in less than a year. Effective immediately, the individual premium subscription price will ascend from USD10.99 to USD11.99, while the Duo plan will now be priced at USD16.99, up from USD14.99 per month. Additionally, the Family plan will undergo a price hike to USD19.99 from USD16.99, while the Student plan remains unchanged at USD5.99.
In a blog post, Spotify elucidated that subscribers in the US would receive detailed communications regarding the price updates over the next month. The rationale behind these adjustments, as articulated in the post, revolves around sustaining investments and innovations in product features to ensure users receive an unparalleled experience while navigating through a diverse array of music, podcasts, and audiobooks.
This pricing realignment comes against the backdrop of strategic maneuvers by the Swedish media service provider, including significant workforce reductions. In December 2023, Spotify announced a workforce reduction of 17 percent, impacting approximately 1,500 employees. This followed earlier reductions in January and June, amounting to 6 percent and 2 percent of its workforce, respectively.
Despite these organizational changes, Spotify has demonstrated resilience in its financial performance. The first quarter of this year witnessed a noteworthy turnaround, with the company reporting an income of USD174 million, marking a significant recovery from the USD206 million loss recorded in the corresponding period last year. Moreover, revenue surged by 20 percent annually, surpassing USD3.6 billion, up from USD3 billion during the same period.
As Spotify navigates through a landscape of evolving market dynamics and strategic imperatives, these pricing adjustments underscore the company's commitment to maintaining a sustainable growth trajectory while continuously enhancing its offerings to cater to the diverse preferences of its user base.
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