Spotify is planning to hike its prices for the second time in a year at the end of this month, in some of its biggest markets, including Australia.
👉 Background: Spotify is the biggest music-streaming service worldwide, but its finances have been shaky for a long time. In fact, Spotify has lost money every year since it went public in 2018, mostly because of the cost of royalties.
👉 What happened: Spotify is planning to hike its prices for the second time in a year at the end of this month, in some of its biggest markets, including Australia. This price hike is largely to cover the costs of audiobooks.
👉 What else: Spotify’s also looking to introduce a new basic tier to its subscription options that’ll cover music and podcasts, but not audiobooks, as the company looks to rethink its subscription tiers.
💡Tiered pricing is a strategy where a company aims to match different customer segments' willingness to pay with different price points.
💡Spotify has been losing money with its current subscription model. But, despite raising prices last year, Spotify saw its strongest year of user growth ever—which suggests that it's not yet reached its price ceiling.
💡Dedicated music fans are more and more willing to pay for premium experiences around music:
Sign up for Flux and join 100,000 members of the Flux family
