Spotify is rising costs in a number of areas exterior of the US, simply days after posting disappointing earnings. Spotify introduced on Monday that Premium subscribers throughout Europe, South Asia, the Center East, Africa, Latin America, and Asia-Pacific shall be notified about pricing adjustments “over the following month,” offering an instance e-mail exhibiting a €1 month-to-month enhance from €10.99 to €11.99 in an unspecified nation.
Sadly, Spotify’s announcement doesn’t identify the impacted nations. A spot verify throughout a number of European nations utilizing Web Archive snapshots from July reveals that €1/mth will increase have already been utilized for brand spanking new clients in Spain, Italy, and Portugal. European nations that beforehand raised subscription pricing in current months — together with France, Belgium, Luxembourg, and the Netherlands — don’t seem to have been hit with extra will increase.
Regardless of posting optimistic outcomes for paid subscriber progress in its quarterly earnings report on July twenty ninth, Spotify’s revenue forecast fell beneath analysts’ estimates. Spotify’s inventory worth fell by 11.5 p.c the identical day, wiping $16 billion off the corporate’s market cap.
When requested in the course of the earnings name why Spotify isn’t elevating costs extra ceaselessly, CEO Daniel Ek mentioned that the streaming firm was prioritizing retaining subscribers for the long run over making short-term income positive aspects. These new worth will increase might not be immediately responding to that criticism, nonetheless, as The Monetary Occasions reported in April that Spotify was already planning to hike costs in Europe and Latin America this summer season.