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Spotify CEO Reveals Possible Price Hike

This is despite adding 6 million subscribers in Q3 2020

No, it is not just Netflix that is set to raise prices: Spotify co-founder and CEO Daniel Ek said during the company’s third quarter earnings, where Spotify fell short on both sales and earnings despite adding 6 million paying subscribers. With 144 million paying subscribers out of a total of 320 million subscribers, Ek said that it plans to raise the price of its services in select locations—specifically in places where “users will continue to see the value in paying for their streaming subscription.”

Ek justifies the planned price hike, adding that in markets where the service is more mature, they plan to add “Enhanced Content”. This unique content would focus mostly on podcasts: this quarter alone, Spotify launched 58 original and exclusive podcast shows across 16 countries. These exclusive podcasts include The Michelle Obama PodcastBatman Unburied, and an upcoming one based on League of Legends and the eSports itself.

“While it’s still early, initial results indicate that in markets where we’ve tested increased prices, our users believe that Spotify remains an exceptional value and they have shown a willingness to pay more for our service,” Ek explained

Just like with Netflix, expect Spotify to implement the price hike in key markets like the United States first. The Philippines will most likely be affected by the price hike with Congress proposing a tax on all digital services.

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