Spotify will increase their premium subscription price tier for several international markets this September. The digital music streamer announced Monday that the change comes as they look to innovate across their product offerings and features.
Premium subscribers in South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific regions will be affected by the price hike, paying €11.99 a month up from €10.99. The platform did not name which specific countries will be impacted. Subscribers in these markets will receive an email explaining the price rise in the next month, Spotify said in a press release.
American subscribers remain unaffected for now. Spotify kept U.S. subscription pricing consistent for 12 years before raising prices in 2023 and 2024.
In Spotify’s second quarter this year, the streaming giant added eight million paying customers, pushing it to 276 million so-called premium customers overall.
The company reported a loss of €0.42 per share during their latest earnings report, translating to a loss of about $100 million for Q2. The subscription increase reflects a push to improve margins for the company.
Spotify’s profit forecast fell below analysts’ estimates last quarter, and its stock price fell by 11.5% on the day its earnings were reported, wiping $16 billion off the company’s market cap. However, shares were up 5% pre-market after news of the premium price hike broke.
The streaming platform has expanded its offerings beyond its library of music and podcasts. Spotify provides video content to attract subscribers and has also expanded their podcasting partnership program, Spotify for Creators, to help podcasters monetize their content.
