Report: Spotify testing price increases

Report: Spotify testing price increases

Spotify is testing to see whether it can raises premium subscription prices around the world.

According to Bloomberg, Spotify will raise the price of its family plan in Scandinavia by around 13%.

Spotify has not commented and there has been no announcement of the increase. It remains to be seen if the increase would be permanent and whether it will be isolated to one territory.

The current family plan costs £14.99 a month and lets up to five people use the service. Spotify has also tested a Premium Duo plan that allows two subscriptions for €12.49 (£11.42).

The £9.99 standard UK price has been unchanged for several years, despite the price inflation of other equally ubiquitous services and utilities. In the US it is even better value with the prices at UK parity, although that increasingly reflects the exchange rate between the dollar and pound.

While there’s an on-going issue about the value placed on music, labels have generally been reluctant to dicatate what Spotify’s price point should be

However, there has been growing concern at the decline in average revenue per user as Spotify targets growth with bundles, three-month offers and new markets where prices are lower in line with local economies.

While Spotify has always targeted growth, price will be key to its future profitability and returns for shareholders. Rivals such as Apple Music and Amazon Music are under less pressure to make profits within their wider operations.

author twitter FOLLOW Andre Paine

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