Spotify is planning to increase the prices of its subscription plans, the companys CEO and co-founder Daniel Ek confirmed yesterday in the Q3 earnings call.
The platform has ‘matured’ to deliver more content at a better value to customers, he claims. Spotify began as a streaming service for music but now offers podcasts and more.
Increased prices have been tested with users in multiple markets and now look to be expanding. As recently as 1st October, Spotify upped the price of the Family Plan in Austrailia from $17.99 to $18.99 AUS. It’s now raising prices for this plan in Belgium, Switzerland, Bolivia, Peru, Ecuador and Colombia. The price of the Duo Plan will be increased in Colombia.
Ek says that Spotify “will continue to tread carefully in these COVID times to ensure we don’t get ahead of the market” and that “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”.