Spotify has become the music streaming platform. Other platforms such as YouTube Music and Tidal do exist. However, none of them come close to the reach or influence of Spotify. It also expanding its podcast services over recent years. Spotify is now the official home of Joe Rogan and The Ringer founder Bill Simmons.
Spotify is free to use with ads. Furthermore, it has previously introduced a system where ads are “frozen” for 30-minute play intervals. However, ads can be avoided entirely with a $9.99 subscription to Spotify Premium. Spotify has also previously run promotions That may not be the case for much longer, as Spotify might be gearing up to raise its prices.
Spotify “Ready” To Raise Prices
Spotify is not exactly losing money. During their first quarter shareholder meeting, the platform was reported to have made $3.3 billion during 2023 Q1. That’s a 14% increase over 2022, but “slightly lower than the company expected.” This is reportedly due to a $20 million hit taken by the advertising revenue over economic uncertainty. However, CEO Daniel Ek appears set on raising prices in the US. “I think we are ready to raise prices, I think we have the ability to do that, but it really comes down to those negotiations [with major music industry stakeholders].” Ek said. Spotify currently has a reported 210 million premium subscribers. That means they are looking to increase the estimated $2.1 billion they make from premium subscriptions alone.
He also noted that “We did raise prices in 46 different locations and markets last year, and even in those markets, we were still out performing. I feel really good about our ability to raise prices over time — that we have that ability — and we have lots of data now that backs that up. We may have been marginally helped by being a lower-cost provider, but it isn’t a primary part of our strategy and it’s not something that we’re thinking about. Instead, we’re working with our label partners to work […] to figure out what’s the best opportunity to do that. And that’s a more complex trade. When the timing’s right, we will raise it.” While no formal plans were announced, be ready for your Premium subscription to change by the end of the year.
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