Spotify stock rises after company unveils latest US price hikes in profitability push
What are the new prices for Spotify's US subscription plans starting in July?
Starting in July, the new prices for Spotify's US subscription plans are as follows:
- Individual plan: $11.99 per month (previously $10.99)
- Duo plan: $16.99 per month (previously $14.99)
- Family plan: $19.99 per month (previously $16.99)
- Student plan: $5.99 per month (price remains unchanged)
Spotify announced these price hikes in order to continue investing in and innovating on its product features, aiming to provide the best experience for its users.
What was the impact of last year's price increases on Spotify's growth according to the company?
According to Spotify, last year's price increases had minimal impacts on the company's growth. Despite the increase, Spotify continued to attract subscribers and turned a profit in the first quarter of this year, beating most of its key metrics. The company has been committed to increasing prices, as well as implementing other initiatives such as layoffs and more targeted investments, in an effort to improve profitability.
How did Spotify's financial performance in the first quarter influence its decision on raising subscription prices?
Spotify's financial performance in the first quarter showed that the company turned a profit and beat most of its key metrics. This likely influenced the decision to raise subscription prices, as the company aims to continue investing in and innovating on its product features to provide the best experience for users. The price hikes are also in line with Spotify's commitment to improving profitability through various initiatives, including layoffs and more intentional investments in the future. The strong financial performance in Q1 may have given Spotify the confidence that it can raise prices without significantly impacting growth, as it previously saw minimal impacts on growth after last year's price hikes.