Spotify will raise the price of premium subscriptions in certain markets beginning in September
On Monday, Spotify announced that it would increase the monthly cost of its premium individual subscription in select markets beginning in September, as part of an effort to enhance margins.
The company’s stock price increased by almost 8%. This year to date, they have gained approximately 40%.
In markets including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region, the subscription price will rise from $12.86 to $13.86 per month.
According to Spotify, subscribers can expect an email detailing the price hike within the coming month.
It has reached its first annual profit by 2024, thanks to price increases in the past and cost-reduction measures in recent years.
In the second quarter, the company saw a rise in monthly active users and premium subscribers; however, increased employee wage-related taxes caused it to report a loss for that period and negatively impacted its third-quarter earnings projections.
