Spotify reaches 144 million subscribers and studies a price increase
Spotify has just announced the business figures for the last quarter, which runs from July to September, adding 6 million new subscribers. making a total of 144 million subscribers with a total of 320 million users if we add those who use the service with the ads offered by the Swedish platform.
Without blocking, advertising sales, as well as the benefits obtained in the last three months, have not been as planned and expected, the market has responded with a drop in the price of enthusiasm. In the presence of a possible stagnation of income, the decision is to increase the price of the subscription, according to the company’s delegate guide.
An increase in the price of the monthly fee, allowed Spotify earn higher income in the markets where it is present, an increase that has already been proven in some countries of the ideal of Europe and where users have not experienced any type of rejection.
The company leader He did not detail the increase plans, where these increases will be made. and how much the increase could mean, but everything seems to indicate that the price increase could be generalized in all countries.
I believe that an increase in hourly valence is the most reliable signal we have for determining when we can use price as leverage to grow our business.
What the Spotify CEO is referring to is whether users use Spotify more on a daily basis or not. If they are, obtain more valence of the product and therefore they should be willing to enrich more.
Whereas Spotify now offers millions of podcastsOn the other hand with having dozens of exclusive programs, it could easily be argued that the valence for the consumer has increased.
Netflix has been raising the price of the subscription in recent years, and even so, continues to attract new users every quarter. The increase in the price of the services is little that is associated with the service and that is easily assumed by all those users who are already enjoying their service.