Spotify may have exceeded its revenue goal for the year and increased subscribers, but there may be a price hike in 2023.
In a conversation with the Wall Street Journal, Spotify Chief Executive Daniel Ek said increasing prices in the U.S. “is one of the things we would like to do, and it’s something we will [consider] with our label partners. I feel good about this upcoming year, and what it means about pricing for our service.”
The increase comes after other streaming services– Apple and YouTube–announced a pricing increase for their platforms. Apple is increasing its prices by $1 to $10.99 per month. YouTube is raising its price of their Premium Family Plan from $17.99 to $22.99
EK also spoke about competition is suitable for their company.
When our competitors are raising their prices, that is really good for us,” said founder-CEO Daniel Ek on a conference call following its latest financial report. He said that Spotify has the lowest churn among its peers and offers “a great customer value proposition.”
Netflix Price Increase
As you know, Netflix also increased their prices in January.
The U.S., the subscription price for the standard plan increases to $15.49, the basic plan rises to $9.99 and the premium plan is now $19.99. A Netflix spokesperson spoke about the latest price increases.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members. We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget,” they said.
Roomies, what do you think of this?