Everything is fine for Spotify. The musical transmission giant, which has also been placed in the podcasting and audiobook sectors, continues to earn money. But the platform would also prepare to launch a great increase in its prices in several countries, essentially in European and Latin America.
Like Netflix, which has also increased the price of its subscriptions, Spotify should increase prices between 1 and 4 euros per month, depending on the formula. In France, where the platform has an integrated transmission tax, prices could soften, but reach up to 13 euros (it is currently 11.12 euros/month). The family subscription would exceed 20 euros per month (against 18.21 euros/month).
According to financial time, this increase would be valid as of May 1 for new subscribers, and within thirty days for existing ones. Contacted by Tech & Co, Spotify did not comment.
Highlight subscribers for Spotify
The world number one on the audio platforms on Tuesday announced a 12% increase in the number of their subscribers paid in the first quarter for more than a year, with 268 million users, and recorded operational profits but lower than expectations.
“The underlying data are currently very healthy: the commitment remains high, the retention is strong and thanks to our + Freemium + model (combining free and paying, note of the editor), people have the flexibility of staying with ourselves when things are more uncertain,” said Daniel Ek, founder and CEO of Spotify in a press release.
The Swedish group had 678 million monthly active users at the end of March, an increase of 10% for a year, an exactly in line with their expectations.
The number of subscribers they pay, which constitute most of their income, reached 268 million, a slightly higher result than its forecasts (265 million).
A benefit below forecasts
On the other hand, the operational gain increased from 203% to 509 million euros is less than its forecast established at 548 million euros.
“It is lower than the forecasts, because the improvement of the gross margin and the fall in staff costs, related costs and marketing costs were exceeded for 76 million euros in social positions,” said the group in their financial presentation.
Billing increased by 15% to 4.19 billion euros.
Thanks to a control of its costs, as well as an increase in the price of payed subscriptions in several markets, including the United States, the group registered its first annual net gain at 2024 to 1,100 million euros.
Spotify is one of the winners of Wall Street since the beginning of the year, with a 34%jump.
Source: BFM TV
