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Spotify will raise subscription prices in dozens of countries around the world this summer, according to people familiar with the issue. This is because music streaming readers prioritize profitability amid the stock price surge.
The group had planned to raise prices worth 1 euros for individual subscriptions in European and Latin America as early as June, these people said.
Spotify won’t raise prices this summer in the US, the biggest market, people said. The streaming service raised the country’s monthly prices in July 2024. Spotify declined to comment.
Music industry executives have long lobbyed Spotify, Apple Music and other streaming platforms to raise prices, and have been rising slowly over inflation compared to video streaming subscriptions such as Netflix, saying the service is cheaper. Even after recent prices have risen, US Spotify subscriptions cost $11.99 a month compared to the $9.99 a month when the group launched 14 years ago.
Spotify has already quietly begun price hikes in some countries, such as the Netherlands and Luxembourg, in recent weeks. The push will be pretty intensifying this summer, said someone familiar with the issue.
According to IFPI Trade Group, the move has started to slow down the music business’s rapid expansion over the decade, and the global revenue growth of the sector last year begins to slow down.
When large music companies are looking for a fresh growth foot, they are promoting “Streaming 2.0.” This is the next stage in music streaming, which includes a more expensive premium version of the service.
Streaming groups including Spotify were considering charging extra money to get early access to music, as the music industry is looking to gain the most passionate fans of the beloved artists.
They were also considering providing early access to concert tickets to people paying for the super premium class, these people said.
Spotify is focusing on the “super premium” class, which costs $6 extra, in addition to the $11/month fee in the US, FT reports.
According to some executives involved in these discussions, these premium subscriptions vary across major platforms. Apple, Amazon and YouTube are also preparing premium versions of their music streaming services.
However, these people warned that plans could change.
Lucian Grainge, CEO of Universal Music Group, introduced the term “Streaming 2.0” on Capital Markets Day in September. “The next phase of streaming, what I want to call Streaming 2.0… We believe value will grow significantly,” Grain told the investor’s room at Abbey Road Studios in London.
Observers have questioned how consumers will respond to more payments after enjoying access to music from all around the world for around $10 a month over the past decade.
“Do people want something new?” said Mark Mulligan, analyst at Midia. “It’s like you need a super premium stick element. And the stick element requires a super premium if you want to listen to music first.”
Spotify’s stock has more than doubled over the past year as the group has brought both profit and subscriber growth. The company is scheduled to report revenues on Tuesday.
