Spotify may be considering to increase the price of its subscriptions, according to a report by TechCrunch. The site wrote that this speculation is based on comments made by company co-founder and CEO Daniel Ek during its third quarter earnings last Thursday.
Ek said that even though Spotify’s user growth continues to be its primary focus, the company would not disregard markets where the service is more mature and has increased the value it provides to subscribers. The co-founder also emphasised on further pushing its “enhanced content” such as podcasts, which the company has invested in as an effort to increase its ever-growing content library.
“While it’s still early, initial results indicate that in markets where we’ve tested increased prices, our users believe that Spotify remains an exceptional value and they have shown a willingness to pay more for our service,” stated Daniel Ek. “So as a result, you will see us further expand price increases, especially in places where we’re well-positioned against the competition and our value per hour is high.”
TechCrunch said that Spotify has been mulling on the possibility of increasing its subscription prices all year long. It reported that the Ek dropped several hints regarding this during the previous quarter earnings in 2020, commenting that the service’s exclusive podcast content, overall improving service, and the existence of higher average revenue per user enables “pricing power”.
The company nor its co-founder specifically detailed its plans for the price increments in terms of dollars and cents, or even geographies. Regardless, any significant changes will only be known when Spotify decides to make an official announcement in the coming weeks or months.