Spotify has raised the price of subscriptions. The streaming music and podcast service updated its page with the new rates at 1pm Italian time. It is the first price hike for subscribers in the company's history.
The cost of the individual subscription goes from 9.99 to 10.99 euros per month. The Duo subscription from 12.99 to 14.99 euros. The Family goes from 15.99 to 17.99 euros. Student from 4.99 euros to 5.99 euros. In fact, an average of one euro more for each single subscription.
The new tariffs will be implemented in almost all countries where Spotify works. The company says the new pricing will go live next month and that subscribers will receive an email notification and have a one-month trial period before the new pricing takes effect. But you can always cancel your subscription before the trial period ends.
Spotify has around 518 million users worldwide. Of these, approximately 300 million are Premium subscribers. The company has specified that the decision to change the prices is due to the changed market conditions. Weighing inflation and rising costs, including energy. In Europe alone the company has 150 million users. In 2018, the company founded in 2006 in Stockholm by Daniel Ek was listed on the Nasdaq and has a capitalization of approximately $26 billion.
In 2022 it generated 11.7 billion in revenues, an increase of 21% on the previous year. According to data collected by Statista, it has never been profitable, but its user base continues to grow thanks to the investments of its venture capital funds. In 2022 it recorded losses of 236 million, while in the same year it recorded that 433 million people access the platform at least once a month, to access its base of 100 million songs and 5 million podcasts available.