The wave of general price increases has also reached the music streaming platform Spotify, which announced that it will raise the price of its ad-free premium, family, and duo packages. As explained by the company, the market has changed significantly since the platform’s launch, and in order to continue developing and innovating, a price change is necessary. They claim that the increase will help them ‘continue to provide value to fans and artists on the platform’.
The premium program, which Spotify claims has over 200 million subscribers worldwide, will now cost $10.99, while the family package will also increase by a dollar, rising from $15.99 to $16.99. The premium duo package will increase by two dollars, from $12.99 to $14.99.
Major Restructuring
In addition to the U.S., the company announced that it will raise prices in most EU countries, the United Kingdom, Asia, and parts of South and Central America. Spotify has, as its CEO Daniel Ek admitted earlier this year, invested too ambitiously in its podcast business at the expense of profits. Since 2020, the company has spent 493 million euros on four acquisitions, and the return on investment has not come as quickly as they had envisioned.
This has resulted in significant losses (in the first quarter, the net loss amounted to 156 million euros) as well as layoffs. Earlier this year, the company laid off 600 employees, and in June another 200. In addition to laying off its workers, they also ‘fired’ Duchess Meghan Markle, whose podcast Archetypes ended after one aired episode. Although the Sussexes had a $20 million deal with Spotify, insiders claim that the results did not satisfy Spotify’s executives, leading them to decide to end it.
