2023-07-25 09:21:00
The decision is unprecedented. For the first time since its deployment in Belgium, Spotify will increase the price of its Premium subscription. This is the case in 51 other countries, including France, Luxembourg, the United States, the United Kingdom and its preferred territory, the Nordic countries: Norway, Denmark, Finland and Sweden.
Spotify took a long time to “localize” Belgium: assessment of this first year at Belgian time for the platform which reveals its prospects
To be able to continue listening to their music online without and offline, subscribers will have to put their hands in their pockets. One euro more per month, the price of the Premium subscription going from 9.99 euros to 10.99 euros. The symbolic and psychological bar of 10 euros is therefore exceeded. Spotify follows its competitors Apple Music and Deezer who have already taken the plunge last year.
This pricing change is effective immediately indicating the press release. The platform specifies that it will notify its subscribers by email. These will benefit from one month before the application of the new price. During this period, they can unsubscribe if they wish, or subscribe to another offer such as the free one, but with . New subscribers will be charged the price of 10.99 euros now.
The Premium student subscription is not spared
The Premium subscription is not the only one affected by the announced increase. The duo goes from 12.99 euros to 14.99 euros and the Family formula also gains 2 euros, going from 15.99 to 17.99 euros.
Students are not spared. No more 4.99 euros per month, now up to a billing of 5.99 euros.
Profitability at all costs
Spotify justifies these increases by the evolution of the streaming market and the need to continue to offer innovations. Except that users made aware of the price changes deplore that these increases are not accompanied by new services added to their application.
The other reality behind this increase in Premium subscriptions is Spotify’s quest for profitability. The platform may have more than 515 million active users, 210 million paying subscribers and largely dominate its competitors, it is still not profitable. Despite a turnover of 12 billion euros last year – two more than in 2021! –, its losses for 2022 amounted to 430 million euros!
In January, Spotify announced that it was cutting 6% of its workforce.
Invited to the premises of the platform in Stockholm in June, La Libre Belgique and the DH were able to talk with some of its leaders. The message was clear: Spotify must become profitable. To achieve this, the company plans to double its audience by 2030, or reach one billion active users. It relies on innovations to achieve this.
AI DJ to serve you
If Belgian, French and Luxembourg users may deplore the absence of new features accompanying the announced price increase, the platform should soon deploy innovations already active in other markets such as the United States, Canada or Australia. This is the case of IA DJ, an artificial intelligence that automatically generates comments that can be inserted into your listening. This generated content is presented as a real plus compared to pre-recorded comments.
Could music streaming be a giant with feet of clay?
Spotify is also changing paradigm. If the time when the user came to peck himself in the vast catalog of titles on offer is long gone, the recommendation by way of playlists as we have known it for 10 years has also had its day. The Swedish platform is now focusing on advanced customization. Or how to offer a software interface in which everything adapts perfectly to the tastes and habits of each individual.
As always, it will be necessary to see if the user will be seduced by this new proposed direction. Only the future will tell.
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