Spotify costs more – level 3

28-07-2023 07:00

Spotify has increased the prices of its premium plans for users in the US and the UK, as well as in many other countries, in an effort to improve profits during uncertain economic times.

The price hike means a rise of 1 dollar to 2 dollars for premium plans in the US, now ranging from 5.99 to 16.99 dollars. The company stated that these updates are aimed at providing continued value to fans and artists on their platform. To enhance margins, Spotify has undertaken layoffs and restructured its podcast unit, which was heavily invested in.

This move aligns with a trend in the industry, as other streaming services like Apple, Amazon, Tidal, and YouTube Premium have also raised their prices.

Difficult words: hike (a sharp increase), margin (the difference between the cost of a product or service and its selling price), layoff (ending a worker’s job).

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What are the implications of streaming services raising their prices on user loyalty and what strategies have they employed to ensure continued value for both fans and artists?


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