Spotify to raise subscription prices as it adds new features
What's the story
Spotify, the popular music streaming service, is planning to increase its subscription prices. The decision comes as part of the company's strategy to invest in new features and services. Alex Norstrom, Co-President and Chief Business Officer at Spotify, made the announcement in an interview with Financial Times. The price hikes will be accompanied by these planned new services and features.
Pricing strategy
Price hike in select markets
Earlier in August, Spotify announced a price hike for its premium individual subscription in select markets starting in September. The monthly fee will go up from €10.99 to €11.99 ($14.05) in South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. This move is aimed at improving the company's profit margins while also investing in new features and services for its users.
Business approach
Flexible approach toward pricing strategy
Norstrom said, "Price increases and price adjustments and so on, that's part of our business toolbox and we'll do it when it makes sense." This statement highlights Spotify's flexible approach toward its pricing strategy. The company is willing to adjust prices as per market conditions while continuing to invest in new features for its users.