Spotify finalizes a price increase in several markets and soars 7% on Wall Street

The price of Spotify shares rose up to 7.36% on Wall Street this Wednesday due to published information that suggests that the music streaming platform will raise prices in several key markets by the end of April, while which will raise the cost of the service in the United States at the end of the year.

The shares of the Scandinavian company rose up to 7.36% on the New York Stock Exchange , where they debuted six years ago, although at the end of the first hour of trading they moderated their advance to 6.55%. So far this year , Spotify shares have appreciated more than 50% .

According to Bloomberg , the platform is finalizing an increase of between 1 and 2 dollars per month in its rates in five markets by the end of April, including the United Kingdom, Australia and Pakistan , while it will increase prices in the United States , its largest market, to End of the year.

The Swedish company will also introduce a new basic subscription tier that will offer access to music and podcasts, but not the audiobook service, for the current $11 monthly price of an individual premium plan. In this way, users of this new plan will have to pay for audiobooks.

Likewise, the sources consulted indicated that Spotify has also been working on a “supremium” plan, which would charge customers a higher price for access to high-fidelity audio, among other features.

For years, Spotify offered customers the choice between a free, ad-supported music service with limited functionality and a paid product with unlimited access.

However, the multinational has been losing money every year since it went public in 2018 , largely because it allocates around 70% of its income to paying royalties to the music industry and artists, which last year In the past they received more than 9,000 million dollars (around 8,400 million euros) from Spotify, compared to a turnover of 13,200 million dollars (12,278 million euros).

The music platform closed 2023 with losses of 532 million euros , compared to the ‘red numbers’ of 430 million euros recorded the previous year, 23.7% more. The number of users at the end of the year was 602 million, 23.1% more than twelve months earlier, although only 236 million users were paying.

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