He confirmed: “There are local nuances that happen such as… inflation and pricing, tax related things, and sometimes it’s even down to market maturity. ![]() ”ĭaniel Ek, speaking during SPOT’s Q3 earnings call ![]() “Specifically related to the Nordic countries, we haven’t yet – it’s early days – we haven’t yet seen any material impact in either gross adds or churn. So it was interesting to hear Spotify CEO, Daniel Ek, directly address a question centered on these price rises in SPOT’s Q3 earnings call on October 28. Indeed, streaming revenues actually accelerated in Norway in the year that followed SPOT’s price hike. ![]() Recent MBW research, however, based on industry data, suggests that questions on this matter are actually anything but dumb.įollowing a ‘test’ price rise of 10% for Spotify Premium in Norway – launched in July 2018 – MBW found there hadn’t been any subsequent slowdown in music streaming subscription uptake in the market. The firm’s outgoing CFO, Barry McCarthy, infamously (and irritably) said last year that queries regarding a potential subscription price rise amounted to “one of the really dumb questions I get”. Spotify Premium has cost subscribers $9.99 per month since it launched in the US back in 2011.įrom then to now, factoring in inflation, that same amount of money in real terms is worth just $8.73 (or, to put it another way, $9.99 in 2011 is now worth $11.43).Īs Spotify’s ARPU rates continue to decline, pressure from rightsholders is being exerted on the company to consider raising its prices, but, so far, SPOT has resisted.
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