Spotify has reported that it now has 220 million paying customers worldwide, exceeding its own expectations. When free users are also included, the streaming service boasts a total of 551 million customers. However, despite its growing customer base, Spotify is still in the red. In the most recent quarter, the company recorded a loss of €302 million, compared to a loss of €125 million in the same quarter last year. This is partly due to increased taxes on the music industry.
Spotify aims to address this issue by introducing price increases. The streaming service recently announced higher subscription costs in over 50 markets, including the US, France, Spain, and the UK. The basic subscription cost will rise from $10 to $11 in these markets. However, the prices will not be increased in Germany for the time being. Spotify stated that the market landscape has evolved since its launch, and these price adjustments will help the company to continue bringing value to fans and artists on its platform.
In addition to price increases, Spotify also plans to introduce a new subscription tier called “Supremium” later this year. This more expensive model will offer lossless music streaming and will initially be available in markets outside the US. However, there is currently no information available regarding the pricing of the Lossless subscription.
Despite its financial challenges, Spotify continues to dominate the streaming industry with its large customer base. The company remains optimistic about its ability to innovate and deliver value to both fans and artists.
