Spotify to test 13% price rise
Spotify is looking to raise its prices more than 10 per cent as it launches a trial in its home region to gauge customers’ response.
Prices of Spotify’s family plan are to be raised about 13 per cent in Scandinavia, according to sources speaking to Bloomberg, as it tests the water for possible wider price rises.
The music streaming service is the largest paid for music subscription in the world, and currently charges £14.99 a month for its family plan.
It is thought that raising prices could increase revenues in markets where it already has a strong presence, such as Northern Europe, amid increasing pressure from Amazon and Apple’s streaming services.
Unlike its rivals, Amazon, Apple and even YouTube do not need to make revenue from their streaming service, which is largely the same as Spotify, and can use the platforms to sell other goods.
Spotify has around 108 million paying subcribers, nearly twice Apple Music’s 60 million.
Despite its dominance it still loses money, and is understandably reluctant to increase prices over fears customers will jump ship to rivals, who currently charge around the same.