Spotify hikes premium subscription (again) to try and cue up more profits
Spotify jumped 6% after the music streaming giant announced another round of subscription price hikes.
The streamer said it plans to raise premium subscription rates over the next month across several regions, including Europe, Latin America, Africa, South Asia, and Asia-Pacific.
For instance, European users will see monthly premium prices go up by about 1 euro from 10.99 to 11.99 euros, or about a 9% jump. Subscribers will get the heads-up via email before the new prices hit.
The move echoes last year’s price hike in the US, when Spotify raised its monthly premium subscription rates from $10.99 to $11.99. The decision comes less than a week after the audio streamer posted its second-highest Q2 MAU count, but swung to a loss and gave a lighter-than-expected Q3 outlook.
Spotify shares are up 46% year to date.