Spotify set to finally announce a price increase, WSJ reports


Spotify Premium on an iPhone.
Phil Nickinson/Digital Traits

In what solely might be described as a Friday afternoon information dump meant to melt the bottom earlier than an earnings name the next week, The Wall Avenue Journal reports that Spotify is about to extend its month-to-month subscription payment for the primary time.

Spotify Premium is ready to extend by $1 a month to $11, in accordance the unsourced report. Spotify itself has but to announce any adjustments. Spotify has lengthy resisted any value will increase, however the transfer would carry it in step with all of its main rivals, a few of which have seen current will increase to that $11 mark.

Spotify’s free service presumably will stay unchanged.

A value improve was all but assured by Spotify CEO Daniel Ek in the course of the firm’s first-quarter earnings name. “I really feel actually good about our skill to lift costs over time — that we now have that skill,” he mentioned on the time. “And we now have plenty of information that backs that up. … When the timing’s proper, we are going to elevate [rates], and I believe that value improve will go down effectively as a result of we’re delivering numerous worth for our prospects.”

The value improve additionally virtually actually was inevitable resulting from the truth that Spotify continues to be searching for to show a revenue (a reality additionally famous within the WSJ story). The corporate ended the primary quarter with a 156 million-euro working loss, and a complete lack of 239 million euros.

Nonetheless up within the air, in the meantime, is whether or not Spotify is getting any nearer to launching its long-awaited hi-fi lossless tier.

Spotify reported having 210 million subscribers to its Premium service as of March 31, 2023, a rise of 15% yr over yr, so a $1 improve would herald a further 200 million euros (and alter) in income. (Premium additionally contains the Household Play and Duo Plan.)

Spotify will announce its second-quarter 2023 earnings at 8 a.m. ET on July 25.

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