The music streaming service Spotify may increase subscription prices worldwide for the Premium subscription.
Spotify may increase subscription charges?
Despite the fact that Spotify has more users than ever, the company earns less per customer than before. The past quarter was therefore closed with a red profit number, which means that we now have to look at the means for those red numbers to get green.
One way is to increase the price of subscriptions worldwide. By charging higher subscription fees, the turnover per month will of course go up, but this must be done with some caution. Users of the service must still assign the same value to the service after the price increase, or else they will leave and you will face a different problem.
In any case, in recent months, Spotify has tried to increase the value of the music streaming service by adding new components. One of those parts are the podcasts. The service now offers many exclusive and original podcasts that you can listen to via the apps.
The company now hopes that such content would be enough to justify the potential price increase, so people don’t cancel their subscription. In some countries an increase has even been made, including Belgium. This is the Family Plan, which allows you to use Spotify with an entire family.
The company is aware of the timing. 2020 is an unpleasant year for many people, a year in which they may have lost their job or have to cut costs considerably. In that respect, it is not very logical to implement a price increase now.