The increase in the cost of song licenses will cause Spotify to increase its price in 2023. Despite this, the app does not expect to lose subscribers.
Spotify has announced that it will increase the prices of its subscriptions throughout 2023.
The streaming music and podcast service presented its quarterly results to reveal that it will join what its rivals – Apple Music and YouTube – have already done next year.
Spotify CEO Daniel Ek told The Wall Street Journal that he doesn’t expect the price increase for the app’s subscriptions to cause a loss of subscribed users. The executive considers that this is due to the fact that, although the price of the individual Premium Plan of the service remained at US$9.99 in the United States , this cost has already increased in other markets where it has a presence without apparent adverse effects.
Spotify will increase the prices of its plans
A detail that also benefits Spotify ‘s decision for next year is that it is not the only platform that has increased its prices, which would not give its already 195 million paying subscribers a reason to switch to some rival service such as already mentioned Apple Music or YouTube .
At the moment, the company has not revealed exactly how much the increase will be for each of its plans. In Peru , the individual Premium plan costs about 18.90 soles, the duo costs about 24.90 soles, the family one costs about 29.90 soles, and the student offer costs about 9 soles.
These prices are very similar to those that Apple Music had before its increase, so Spotify ‘s increase could go in the same vein.
Why is Spotify’s price increase?
As with Apple Music and YouTube , the increase in Spotify fees would be linked to the rise in license prices for songs. However, Daniel Ek has mentioned that he seeks to reach an agreement with record companies and music producers to benefit each other.
As we pointed out, Apple Music and YouTube recently increased their prices in certain markets so, despite the fact that it may be annoying or even unsustainable for some users, this measure for music streaming services has already begun to be deployed and it seems that there is going backwards.