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Spotify Increasing Subscription Prices For The First Time in U.S.

by Iesha
April 27, 2023
Reading Time: 1 min read
0
Spotify Announces Price Hike for Paid Subscriptions in International Markets, U.S. to Follow

istock

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Spotify will be raising its subscription prices for the first time in the U.S.

On Tuesday, the company’s CEO Daniel Ek said, “I think we are ready to raise prices, I think we have the ability to do that, but it really comes down to those negotiations,” says Ek referring to talks with music industry stakeholders who have pushed for a price hike for some time now.

In the US, Spotify is being encouraged to increase prices like they have in other countries, since the hike is not driving away a large number of customers.

“We did raise prices in 46 different locations and markets last year, and even in those markets we were still outperforming,” said Ek. “I feel really good about our ability to raise prices over time and we have lots of data now that backs that up. We may have been marginally helped by being a lower-cost provider, but it isn’t a primary part of our strategy and it’s not something that we’re thinking about.”

“Instead, we’re working with our label partners to work … to figure out what’s the best opportunity to do that. And that’s a more complex trade,” Ek continues. “When the timing’s right we will raise it.”

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