Spotify To Test Raising Subscription Prices Next Month
Spotify is experimenting with raising its subscription price, in a major test of customer loyalty. The announcment comes just days after the music streamer announced a major expansion of its free ad-supported tier.
Spotify is raising the price of all of its subscription by 10% in Norway. New customer prices will go up next month and existing users will be charged more starting in July. The increase will apply to all three Spotify paid tires – standard subscriptions, as well as, student and family plans.
“In order to meet market demands and conditions, while continuing to offer a great personalized service, Spotify will be increasing the price of our premium subscription in Norway,” the company said in a message to users, as reported by Bloomberg.
It will be the first major test of loyalty for Spotify users. To date, virtually all paid music subscription offerings every where in the world, whether from Spotify, Apple Music, Deezer, Tidal, Napster and others have been priced similarly. In the U.S. that has meant $9.99 per month, with $5 student and $15 family plans.
Raising prices is one of the few ways that Spotify has to become a profitable company without seeking concessions from the recording industry.