Spotify Is Raising Subscription Prices For the Next Few Years
Earlier this week, Spotify announced that it is raising its subscription prices for the next several years. The company plans to raise the prices of its Family, Student and Premium subscriptions, although it will maintain the current price of its Free subscription. In addition, it will continue to allow users to pay for their subscriptions via the app instead of through credit cards.
Several Spotify customers have received emails about price increases for their Student Plans. This is not a new feature. Both Apple Music and Spotify offer Student Plans. Both are a great way for students to listen to music without breaking the bank. However, both also require annual renewals. This makes switching music platforms difficult.
To take advantage of the student discount, you need to be a student at an accredited school, college or university. If you’re already a Hulu subscriber, you can also include that in your discount.
For students who want to try out both services, Hulu and Spotify are collaborating on a new bundle. You will get three months of Hulu free of charge, then $9/month after the trial is up. The bundle also comes with a Spotify Premium account and ad-supported access to Showtime.
You’ll need to provide your university or school’s email address when you sign up to get the discount. The company will verify your status with a third-party platform called SheerID. Afterward, you’ll receive a confirmation email.
There’s no word on whether or not the family plan will get a price increase. However, the Family plan does offer a 20% discount on Spotify Premium for 48 months.
If you’re a student and interested in signing up, you can do so at SpotifyPremiumforStudents.com. You’ll need to provide your edu email address, a valid school or university email address, and a valid proof of enrollment from your school or university. Afterward, you’ll get a discount that lasts for four years.
In the UK, Spotify is also raising the price of its Student, Duo, and Family plans. Prices are expected to increase during the June billing cycle.
Earlier this month, Spotify announced that they are raising the cost of their family plans. According to the email that they sent to their subscribers, the price will increase to about $16 per month. This isn’t too much of a jump, but it’s still a price change.
Spotify also announced that they were raising the cost of individual plans. Individual subscriptions will cost around $10 per month. However, students will not be affected by the change.
The Premium Family plan costs $8 per month. This plan allows for six users to enjoy ad-free listening experiences. This plan is great for family members living at the same address, but it’s not the best choice for sharing outside of the home.
Spotify’s Premium Duo plan is also worth checking out, but it costs only $6.50 per month. The plan includes a one-month free trial.
Spotify is also offering new subscription tiers. The HiFi tier offers a lossless audio format and better sound quality. It will compete with Tidal and Amazon Music Unlimited. The Platinum tier will feature more features and improve audio quality. It’ll also include limited ads on podcasts. The new plans are expected to launch later this year.
Spotify also announced plans to expand into more markets. They’re targeting 80 new markets in February. In March, they announced they had acquired Locker Room, a podcast service. They also introduced new podcast tools.
In the last couple of years, Spotify has been losing money. It has posted operating income losses in five quarters. However, the company has been adding more users. They’ve added 23 million monthly active users in the third quarter of this year. They also exceeded their previous guidance by six million.
Despite a few controversies, Spotify remains a top music service. Last quarter, the company announced an increase in active users and revenue. It is also expected to announce pricing changes for premium subscriptions. This will include a new Platinum plan for $20-30 a month. It will include limited advertisements on podcasts and improved audio quality.
While the company reported strong growth last quarter, its gross margin was lower than expected. Compared to last year’s quarter, revenues increased by 21%. However, the company’s operating loss was higher. During the same period, Spotify gained 7 million premium subscribers, compared to previous guidance of 5 million. The company is expected to report a total of 400 million to 407 million monthly active users in 2021.
While the company’s balance sheet wasn’t as good as it could have been, it’s still in good shape. CEO Daniel Ek said he would like to raise subscription prices in the US. However, he didn’t comment on price increases outside the US.
Last year, Spotify increased the price of individual premium plans in several markets. It also introduced a new audiobook purchase feature. Spotify has also raised the price of family subscriptions in parts of Europe. It will also increase the price of duo subscriptions in the UK.
As of now, Spotify has 195 million premium subscribers. The company is expected to increase its subscription prices next year. It has also confirmed plans to raise prices in 2023. However, it’s not clear whether the increase will occur in the US.
The company has also announced plans to launch a podcast subscription service. This could give Spotify a competitive edge in the competitive streaming audio market.
In-app payment feature
Earlier this month, Spotify announced plans to expand a pilot program to allow Android users to pay for music and subscriptions via Google Play. In an interview with TechCrunch, Spotify CEO Daniel Ek said the program would allow users to sign up for Spotify without having to use the Apple iOS app. However, Ek was unable to say whether Spotify would continue to pay commissions on other payment systems.
Spotify has been in a heated dispute with Apple, which charges the company a 30 percent cut on its digital store purchases. The dispute centers on whether or not Spotify should fork over that cut to Apple.
Apple’s policy has been that virtually all in-app payments are routed through its internal payment processing systems. Spotify and other developers have been unable to circumvent Apple’s rules, which are generally blocked by the company.
In March, Spotify was the first developer to join Google’s user choice billing pilot program. It has since expanded to Australia, Japan, South Africa, and the U.S. The pilot is a test of a new payment method called “user choice billing” that allows Android users to choose the payment method they want to use.
While Google’s pilot is seen as a step in the right direction, it is still likely that Google will take a substantial cut of the in-app purchases. The company has been under intense scrutiny from legislators around the world. It has also been accused of profiting too much from its App Store.
Google and Apple both reaped tens of billions of dollars last year from the App Store. They each take a cut of 15 to 30% of the sale value. However, Google has responded that its service is safe and it provides a user-friendly service.
Future price hikes
Streaming music giant Spotify has been under the microscope lately. In recent months, the company has announced price increases for both its ad-supported and premium family of services, and even launched an audiobook division. The company is also in the midst of a podcast push, with 58 original shows debuting in the past quarter. In July, the company launched a “Batman Unburied” podcast, and the “Michelle Obama Podcast” is scheduled to debut at the top of the charts in the months to come.
The company also announced that it had partnered with Riot Games for a “League of Legends” esports partnership. Its podcasts also made their way to the big screen in a collaboration with Chernin Entertainment and DC Comics.
Spotify also boasted an impressive 20pc year-on-year increase in total monthly active users. The company also reported a double-digit growth in ad-supported users. The company’s gross margin also slipped, but the company noted an unfavorable change in historical estimates for rights holder liabilities.
On the revenue front, the company reported that it earned 21 percent more in the quarter compared to the year before. Its subscription revenue climbed by 7.7 percent. The company said it added 6 million subscribers in the third quarter. The company’s premium subscriber count increased by 13 percent, and the company forecasted that it would hit a total of 202 million paid users at the end of this quarter.
In addition to the usual suspects, Spotify announced the launch of its own standalone division with a la carte pricing, and has launched audiobooks in the US. It also has a content partnership with Gimlet Media. The company also announced a number of other notable firsts, including its first podcast collaboration with DC Comics and Chernin Entertainment, as well as a “Batman Unburied” and “Michelle Obama” podcast.