Spotify increases the price


Spotify increases the price


Spotify increases the price of the Premium subscription: how much it costs now.
The Spotify company has increased subscribers but has tripled the losses: for this reason, it has decided to raise the price from next month, but not for everyone.
Spotify is the leader in the world of music streaming. Born in Sweden in 2006, from an intuition of Daniel Ek and Martin Lorentzon, in 2017 it recorded a turnover of over 4 billion dollars. However, 2020 was a challenging year for many companies, including Spotify: despite an increase in subscribers, it announced a net loss that more than tripled in 2020, caused by high operating expenses. To return, he decided to increase the price of the season tickets. But not for everyone.
Spotify, subscription boom but triple losses: what happened
Spotify has announced that the net loss, in 2020, was equal to 581 million euros. In 2019, the voice had stopped at 186 million. On the other hand, however, it recorded a significant increase in active users, as many as 345 million in 2020, + 27% compared to 2019, of which 155 million were paying subscribers (+ 24%).

Today Spotify is available in 93 countries, even if it is widespread mainly in Europe: the company has 40% of subscribers on the continent. He wants to continue expanding, which is why he bought the podcast company, Ringer. Spotify currently has 2.2 million titles, more than three times the previous year. Among these are also Prince Harry (with his wife Meghan) and former first lady Michelle Obama.
Spotify increases the price of the Premium subscription: how much it costs now.
Spotify continues to grow in the number of active users, but its business model is experiencing losses: most of the revenue destined for record companies. Many users are not subscribers and accept the intrusion of advertising: but obviously, the numbers are not enough to give oxygen to the budgets.
Spotify has therefore decided, having expanded the user base to raise prices, but not for everyone. The increase will concern users who have a Family subscription: the price to take advantage of 6 accounts has risen from 14.99 euros to 15.99 euros per month. Those who have already activated Spotify Family will continue to pay the same amount for one month, but they will switch to the new tariff from the next one.
On the other hand, no price increases envisaged for different types of Spotify Premium subscriptions: the single account will continue to cost € 9.99 per month. For those Duo and Student, however, the price is respectively 12.99 and 4.99 euros per month.

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