Spotify Thrives: Subscribers Rise Despite Price Hikes
Streaming services are hitting us with price hikes left and right these days, and Netflix is the latest culprit, just announcing another bump in its prices. Spotify joined the party earlier this year by cranking up its subscription fees, but oddly enough, it doesn’t seem to be scaring us away.
According to a new report, Spotify Premium snagged a three percent increase in subscribers, reaching a solid 226 million on a quarterly basis. This boost comes even as Spotify dropped the bomb of price hikes across the US and various global markets.
Not stopping there, Spotify’s monthly active users climbed to 574 million as of September 30th, showing a four percent rise from the last quarter. Surprisingly, these numbers went a bit beyond what Spotify had predicted.
When you compare these figures to the same time last year, it gets even more impressive. Spotify’s subscriber count shot up by 16% year over year, and its monthly active users skyrocketed by 26% year over year.
In the profit department, Spotify raked in around $69 million for the recent quarter, a stark contrast to the $177 million loss from the previous year. Operating income stood at around $34 million, quite the turnaround from the operating loss of about $243 million in the same quarter the year before.
Back in late July, Spotify threw its hat into the price increase ring, marking its first hike in the US in over a decade. The standard Spotify Premium subscription tagged on an extra buck, now sitting at $10.99. Other markets and subscription plans, like Duo, Family, and Student, also got a taste of the price adjustment.
Meanwhile, Spotify is keeping the momentum going by fine-tuning its podcast and audiobook offerings. The company recently launched audiobooks for its premium subscribers, which promptly stirred the pot. The Swedish company fired shots at Apple, accusing it of playing dirty with its App Store restrictions.
This tiff between Spotify and Apple isn’t new; it dates back to 2019 when Spotify accused Apple of anti-competitive behavior in the European Union.
