Spotify will increase the price of its Family Plan subscription. Although Spotify has managed to remain as the most popular music streaming application in the world, it seems like they are struggling. Even though Spotify manages to reach a whopping 144 million paying customers, their earnings are below market expectations. They reported up to 101 million euros loss.
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This data, along with the results of their accounts for the third quarter, has also led the company to announce the imminent arrival of new price increases:
“Initial results indicate that in markets where we’ve tested increased prices, our users believe that Spotify remains an exceptional value and they have shown a willingness to pay more for our service. So as a result, you will see us further expand price increases, especially in places where we’re well-positioned against the competition and our value per hour is high,” said Daniel Ek, co-founder and CEO of Spotify.
For the moment, Spotify has only approved the price increase for the “Family Plan” in Australia, with a very subtle increase of just one Australian dollar for new subscribers starting from October 1st. Although the company has already stated their intention to increase the prices of this same plan, as well as the revision of the price of the rest of the subscription plans, within several European and South American countries following the trail of Netflix.
Spotify will increase the price of its Family Plan subscription. However, the price increase is not the only strategy that the company is trying, with some plans completely opposite as those already seen in India, where it is already considering a free access to the application to seek a greater momentum of growth.
