The international context makes things complicated for Spotify too. Despite slightly improving financial results, profits are not forthcoming. The CEO of the company has a solution in mind.
Music streaming, like on-demand video streaming, has become essential for all music-loving Internet users. Several actors are trying to monopolize this sector. Spotify largely leads the dance with its 195 million subscribers, followed by Apple Music, with a number of subscribers expected to approach 80 million. Despite this clear domination, the shares of the Swedish company are in free fall: the course of Spotify would have lost 58% of its value in one year. How to remedy this? Daniel Ek, the CEO of the company, has his own idea.
If the possibility of creating a Platinum plan at €19.99/month has been mentioned, it is mainly a question of increasing the price of the Premium subscription. Me Ek does not hide it. When reporting the company’s results, he pointed out that YouTube Premium, Deezer and even Apple Music are increasing their prices. According to the CEO, this is a very good thing for Spotify, as it gives it a signal that it too can increase the prices of its service without subscribers going to the enemy.
Spotify will increase the price of the Premium subscription in 2023
Even if the announcement of a new price increase will undoubtedly make subscribers grumble, Me Ek points out that Spotify customers generally remain loyal to the platform. This is undoubtedly the reason why the company maintains its leading position in the music streaming market. Most players in the music industry are in any case in favor of such an increase in prices. They keep reminding that the prices of subscriptions to streaming platforms are a lot too low to properly compensate artists.
We should therefore expect a general increase in the price of Spotify Premium subscriptions in 2023. The company has so far only mentioned an increase in the United States, but there is no doubt that it will also be passed on elsewhere in the world, and all the more so in France, where the government proposes to tax music streaming.