Spotify revealed a rise in subscription fees in the US as part of its strategy to enhance profitability and establish a more stable financial position, aligning with market competition and the need to manage revenue and expenses effectively.
Spotify raises subscription rates in the United States.
The new prices for Spotify subscription plans in the United States have been updated.
- Premium Individual subscription costs $11.99 per month.
- Premium Duo costs $16.99 monthly.
- Premium Family costs $19.99 monthly.
Spotify has implemented various measures to boost its profits, such as cutting marketing expenses and downsizing its workforce to control operating costs.
The company is shifting its strategy from relying on extensive promotions and investments for user growth to now prioritizing a balance between growth and financial stability.
Spotify explained that increasing prices is necessary to support ongoing investment and innovation in its products and resources. The company emphasizes that subscriptions are its primary revenue source, providing users with the option of a free ad-supported service or a paid service with complete feature access.
Spotify aims to boost growth by providing personalized subscription options for music, audiobooks, and podcasts. The company achieved a record quarterly gross profit in April, with a 14% rise in subscribers, reaching a total of 239 million. The projected monthly active users for the second quarter is 631 million.
The alteration in subscription fees currently impacts only customers in the United States. However, under the company’s new plan, this adjustment may extend to other nations like Brazil in the near future.
