Despite having managed to remain as the most popular music streaming application in the world, it seems that Spotify is not at its best. And is that although Spotify managed to reach a whopping 144 million paying customers, Spotify’s earnings were well below market expectations, reporting losses of up to € 101 million.
Some data that have caused that, together with the results of your accounts for this third quarter, the company has also announced the imminent arrival of new price increases:
“While it is still early, initial results indicate that in markets where we have tested higher prices, our users believe that Spotify is still an exceptional value and have shown their willingness to pay more for our service.”Commented Daniel Ek, co-founder and CEO of Spotify,“as a result, we will further expand price increases, especially in places where we are well positioned against the competition and our hourly value is high”.
At the moment Spotify has only approved the price increase for the “Family Plan” in Australia, with a very subtle rise of just one Australian dollar for new subscribers as of October 1. Although the company has already advanced that it intends to increase the prices of this same plan, as well as the revision of the price of the rest of subscription plans, within several European and South American countries following in the wake of Netflix.
However, the price increase is not the only strategy that the company is testing, with some totally contrary plans such as those already seen in India, where it is already considering totally free access to the application to seek a greater growth boost.