In a nutshell: Spotify is raising its Premium subscription prices in the United Kingdom and Europe. Users will be looking at a £1-2 increase in the UK and a €1-3 hike in the EU. The rate change goes into effect on April 30 for new subscribers. Current Premium members won't start paying more until their June billing cycle.
Some users on Twitter were upset at the price increase, but it should not have come as a surprise. Last month Digital Music News reported that Spotify tested the price hike waters in the UK with a survey indicating rates 15- to 33-percent higher than current subscriptions. However, many are more upset at the optics than the increase.
ESPN reports that Spotify owner and CEO Daniel Ek is in talks to buy North London football club Arsenal. Forbes values the team at $2.8 billion as of April 2021.
Pretty cool timing to announce the increase the @Spotify family price shortly after your CEO just putting it out there that he has the capital to buy Arsenal. Must have missed where the increase helps pay artists more, tho?
— Rayne (@RayneBradley) April 26, 2021
Spotify announces price increases in the UK and Europe pic.twitter.com/464j6PVjJ3
— CK's Technology News (@CKsTechNews) April 26, 2021
The rate increases apply to all Premium plans as follows:
- Student—£5.99 (£1 increase)
- Individual—£10.99 (£1 increase)
- Duo—£13.99 (£1 increase)
- Family—£16.99 (£2 increase)
The hikes for the EU are similar, except in some areas where the family plan will go from €14.99 to €17.99.
Just ditched my Spotify this afternoon. Price going up to £17 per month. 🤑
— Willee (@Zilly8illy) April 26, 2021
Spotify plan price is going up, can't wait for the trickle down to increased royalties
— ACT 20 (@ACT20music) April 26, 2021
The rise in rates comes after Spotify predicted a "subscriber-growth plateau" in Q1 2021. Some users are upset about the price hike and whether any of the increase is going to the artists.
Whether the new rates are enough to drive subscribers to YouTube or Apple Music remains to be seen. In the UK, Apple Music will now be £1 cheaper for individuals and £2 less for the family plan. The same goes for YouTube Music. So it does seem to be a strange move for a service that is forecasting stagnant subscriber growth.
Although it has not hinted at raising prices in the US, it should probably be suspected. The UK and European countries often serve as a test bed for price hikes that eventually make across the pond.
Image credit: SyedMKimi
https://www.techspot.com/news/89447-spotify-hiked-prices-uk-europe-us-likely-follow.html
