Spotify monthly subscriptions to see price increase?

Spotify plans to have a price hike in its subscription plans in the near future. This is to supplement the subpar sales from Q2 2020.

Spotify to increase subscription price?

More Spotify users, no increase in sales

For Q2 2020, Spotify announced that an increase of active users and paying subscribers increased. However, sales earnings in the same period did not improve resulting in Spotify's stocks to tank.

Spotify CEO and co-founder David Ek then announced that the company plans to increase the pricing for its subscription plans. This move will allow the music streaming giant to increase its earnings no matter if subscriber numbers go up or not.

Spotify has already expanded its horizons to more than just music streaming. They now also have a big number of podcasts that more and more people tune in to. With the majority of us stuck at home, the demand for streaming services such as Spotify and Netflix increased which makes this move a no-brainer for the company.

Price changes may first arrive for North American subscribers with a global rollout soon to follow. Spotify prices in the Philippines can be expected to increase as well in the near future. Remember that congress passed a bill to charge 12 percent VAT on digital services such as Netflix and Spotify.

What do you guys think?

Source: Businesswire via Techcrunch