Spotify is rising costs in a number of areas exterior of the US, simply days after posting disappointing earnings. Spotify announced on Monday that Premium subscribers throughout Europe, South Asia, the Center East, Africa, Latin America, and Asia-Pacific will probably be notified about pricing adjustments “over the following month,” offering an instance e-mail exhibiting a €1 month-to-month improve from €10.99 to €11.99 in an unspecified nation.
Sadly, Spotify’s announcement doesn’t identify the impacted international locations. A spot test throughout a number of European international locations utilizing Web Archive snapshots from July exhibits that €1/mth will increase have already been utilized for brand spanking new prospects in Spain, Italy, and Portugal. European international locations that beforehand raised subscription pricing in latest months — together with France, Belgium, Luxembourg, and the Netherlands — don’t seem to have been hit with further will increase.
Regardless of posting constructive outcomes for paid subscriber development in its quarterly earnings report on July 29th, Spotify’s revenue forecast fell under analysts’ estimates. Spotify’s inventory value fell by 11.5 % the identical day, wiping $16 billion off the corporate’s market cap.
When requested throughout the earnings name why Spotify isn’t elevating costs extra regularly, CEO Daniel Ek said that the streaming firm was prioritizing retaining subscribers for the long run over making short-term income good points. These new value will increase will not be instantly responding to that criticism, nevertheless, as The Financial Times reported in April that Spotify was already planning to hike costs in Europe and Latin America this summer time.