Your Spotify Bill Will Be Going Up By 9% From September Onwards

Spotify announced that it will be increasing prices in several regions outside of the US.

Premium subscribers across Europe, South Asia, the Middle East, Africa, Latin America, and Asia Pacific will be notified via email about pricing changes "over the next month."

The company provided an example email showing a €1 (about RM4.89) monthly increase in an unspecified country.

CEO Daniel Ek explained that Spotify isn't raising prices more frequently because it was prioritising retaining subscribers for the long term over making short-term revenue gains, according to The Verge.

The company's strategy of increasing prices in the past, along with recent cost-cutting measures, helped Spotify achieve its first annual profit in 2024. While the second quarter saw a rise in both monthly active users and premium subscribers, a loss was recorded due to higher taxes on employee salaries, which also impacted its third-quarter profit forecast.

Spotify is actively expanding its video content to attract and keep subscribers. This is supported by the Spotify Partner Program, which provides podcast creators with new monetisation options. According to Ek, a growing number of creators are joining the program, leading to a significant increase in video content on the platform, Reuters reported.

The streaming company is also benefiting from a favourable change in Apple's App Store policies. A U.S. judge's decision to bar Apple from charging commission on off-app purchases led to Apple approving Spotify's app update, which now shows subscription prices and external payment links. Ek noted that this change has already resulted in a "very positive uptick" in the U.S. and could significantly benefit Spotify and other app developers if similar rules are adopted in Europe and the UK.

Stay updated with ProductNation on here, Instagram & TikTok as well.

Read more related news here:

• Reddit Wants To Be Your New Search Engine By Pulling Answers From Its Discussion Forums
• Spotify Jam Is Coming To Your Car