Spotify’s Price Hike Is Good For Shareholders, Not So Good For Users
Spotify’s plans to raise the prices for various subscription tiers has seen stock prices rise along with it.
Stock rose by 4.9 per cent yesterday, to US$298.02, following the announcement that Spotify plans to increase the US family plan by a dollar, along with similar hikes to various international tiers, including most UK subs. These price hikes will begin Friday.
In March, Spotify sent out a survey to UK subscribers, to feel them out about a proposed price increase. Clearly, the feedback wasn’t too negative, given yesterday’s news.
Another factor in the stock price rise may be Spotify’s decision to follow Apple into the podcast subscription game. Of course, the success of such a model hinges on whether or not people will pay for podcasts.