Spotify raising premium plan prices at behest of shareholders

After years of on-again off-again profits and losses, Spotify is raising its subscription price for U.S. subscribers by $1 in hopes of staying in the black.

While the change hasn't been announced yet, the cost of Spotify's ad-free premium plan will jump to $10.99 monthly, up from $9.99 monthly for U.S. subscribers. This marks the company's first price hike since its introduction.

However, the company's inability to remain profitable and increased pressure from investors and music executives has made the price hike all but inevitable.

According to The Wall Street Journal, the price hike is expected to be announced the week of July 24. The company will likely raise prices in other markets in the coming months.

Apple Music raised the cost of an individual subscription from $9.99 to $10.99 in October. Amazon Music Unlimited, Amazon's all-you-can-play music streaming service, is $8.99 for Prime subscribers or $10.99 for non-Prime subscribers.

In July, Spotify announced that it would cut off any remaining customers paying for their Spotify Premium subscriptions via the App Store.

Spotify remains the most used streaming service in the U.S., with 44.4 million paid subscribers. Apple Music holds the second-place position with 32.6 million paid subscribers.

14 Comments

red oak 1104 comments · 13 Years

About 1 year ago

Spotify has never posted an annual profit in it’s 15 year history

In 2022, it lost $470 million

Just the facts

chasm 3592 comments · 10 Years

red oak said:

Spotify has never posted an annual profit in it’s 15 year history

In 2022, it lost $470 million

Just the facts

Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.

Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

BiCC 59 comments · 1 Year

red oak said:

Spotify has never posted an annual profit in it’s 15 year history

In 2022, it lost $470 million

Just the facts

That is a fun fact!!!!!!! I read that to the misses and she spat out her drink!!!! Thank you for sharing. Losing half a billion is a pretty big hit!!! Ouch.

chasm said:

red oak said:

Spotify has never posted an annual profit in it’s 15 year history

In 2022, it lost $470 million

Just the facts

Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.
Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

My guess is it’s profitable, but with gross margins - 20%. Much lower than the 70% overall Service margin

chasm said:

red oak said:

Spotify has never posted an annual profit in it’s 15 year history

In 2022, it lost $470 million

Just the facts

Meanwhile, Apple Music doesn’t break out its figures, but given the overall incredible growth and profitability of Apple’s Services division, I’m guessing its not that kind of a money-loser. Indeed, it’s incredibly unlikely to be losing any money at all at this point, despite paying more to artists than Spotify does.
Possibly that’s because the team running it are not becoming billionaires off the back of a single product — but that’s just speculation on my part.

I like your speculation. But here is the deal. Everyone I know owns the CD or goes to Youtube or we simply listen to FM Radio. Especially house parties it's all Youtube and that guy that plays DJ - Heavy Metal and the girls start to get pissed so we have to forcefully take away the remote and everyone laughs. I love Megadeath but the girls start to get pissed, and it goes straight to gangster rap. I can't make this up. Hey everyone have you noticed for the longest time we go from Metal to Gangster Rap. Thats why we keep on coming Dummy.