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Home Lifestyle Music

Spotify To Test Increasing Price Of Family Plan

by Ian Chee
September 10, 2019
Spotify
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If you’re a Spotify subscriber, chances are you’ve heard of the Premium for Family plan, if not already on it. It’s a plan that provides good value for money, if you have five family members to sign up for it. That said, the company may be looking to increase the price, based on sources to Bloomberg.

Specifically, the company is testing a price hike in Scandinavia, to see if it can do the same around the world. The plan is to increase the price of Premium for Family plan by about 13%. The test has not gone into effect just yet. And as is the nature of tests, the price hike may not be permanent in Scandinavia, nor will it guarantee a price hike elsewhere.

It’s interesting that the test is limited to the Premium for Family plan. Then again, it shouldn’t be surprising, as it’s the plan with the greatest savings for consumers. In Malaysia, standard subscription costs RM14.90 a month, but getting up to five family members to sign up will only cost RM22.40 instead.

On one hand, Spotify would definitely benifit, as the higher revenue will get the music companies off its back about low royalties. On the other, it may also push its customers away. Either way, it remains to be seen if the test is a successful one.

(Source: Bloomberg via BGR)

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