During a recent conference call with investors, Spotify’s CEO said that the company is raising its plans for future price hikes. The company plans to increase its price for both its services and its subscriptions. This includes hikes in pricing for both HiFi and Student services.
Student
Earlier this year, Spotify announced an upgrade to its student plan. This new student plan comes with a free month of service and a free three month trial. It’s the same as the normal premium plan, but it comes with a few extra perks. It also offers ad-supported Hulu and Showtime.
If you’re a college student, you may have already signed up for an Apple Music or Spotify student plan. These subscriptions are great ways to get access to a huge library of music and audio content. They also allow you to use Apple TV. However, they can be expensive. This is why the two services have been trying to make their offers more appealing.
Both services offer a student discount. Apple offers a student plan that’s about half the cost of its regular plan. This plan is great for students, but it may not be for everyone.
Spotify also offers a half-price deal for students in the UK, Germany, and 33 other countries. While the US still has the best student price, most regions are seeing some type of price hike.
Spotify and Apple Music both require some form of proof of your student status. Both companies use SheerID, an online authentication service, to validate your eligibility. This isn’t the most secure method, but it’s a good way to prove you’re a student. You’ll also receive a confirmation email.
Apple also offers the same free three month trial. While it’s not as impressive as the Spotify Student plan, it’s a great way to check out the service.
The new Student plan is also the largest student discount that’s ever been offered by a music service. This plan is the newest addition to the music streaming service and it’s not surprising that Apple has taken the opportunity to win over students.
While the new Student plan isn’t as significant as the Apple Music plan, it will still make a difference for some students. However, it’s a small price to pay for a large library of music and ad-free listening. You could even get a free month of Spotify if you have an eligible college.
Family
During the third quarter of 2018, Spotify grew its number of subscribers by 20 percent. It is a relatively new kid on the block compared to its competitors. But with the help of a little marketing magic, Spotify was able to acquire a little more than a million premium subscribers. The company was also able to expand its service to more than 80 additional markets, including Russia, the Philippines and Colombia. It also announced a new podcasting tool at a Stream On event.
Spotify hasn’t jumped the gun in raising its prices. The company is raising the price of its premium family plan by $1 a month. But for those who already have a family premium subscription, it is possible to get one extra month free of charge. The company has already tested its pricing in Scandinavia in the summer. But it may be that the price hikes will be more widespread in the near future.
Unlike the usual plethora of music streaming services, Spotify is actually making money. It has a licensing fee which accounts for 70 percent of its revenues. It is also offering a range of plans to suit different tastes. Some of the more enticing features include ad-free listening, ad-free streaking, and even offline listening.
For those who are considering switching, it’s best to try out a few free trials before making your decision. A lot of the competition is already priced at or below $10 a month. For instance, Tidal offers two family plans. The HiFi tier offers regular streams, while the Premium tier is pricier but offers unlimited music downloads.
The best option is to find a family-friendly service like Spotify, then sign up for a free trial. A family plan is a great way to share your favorite music with your loved ones. But if you are looking for a service with more features, you may be better off sticking with your tried and true music player. And if you need more music on-the-go, Spotify’s iOS app offers some of the best streaming options out there. It also has the most user-friendly interface, so you can take advantage of all of the features without breaking the bank.
HiFi
Almost a year ago, Spotify promised HiFi, a feature that would allow users to listen to songs in lossless audio without losing quality. The service was expected to be launched in select markets later this year. But now, Spotify has pushed back the release of HiFi.
According to a new thread on the Spotify Community website, HiFi i is still “in the future.” This means the feature is not coming any time soon.
HiFi was originally supposed to be rolled out in select markets in November. But the launch was delayed due to licensing issues. Spotify has since announced that it will only roll out HiFi in select markets later this year.
According to Spotify’s latest quarterly numbers, the company saw a 20% increase in paid subscribers. The total paid subscriber base grew to 171 million. This growth comes in part from a 75% increase in advertising, which brings in $375 million in revenue. Earlier this year, Spotify partnered with Shopify and Shopify announced plans to let artists sell tickets to concerts.
Spotify plans to add new revenue models. These new models are similar to the ones used by Patreon, which allows artists to pay for access to their content. These new models could include higher-priced music streaming plans. These plans could include a headphone tuner and other features.
The company is also considering lowering the amount of ads it places on its podcasts. This would give users a better experience, but could hurt the company’s bottom line. Streaming services often raise their prices.
Spotify also has plans to introduce a higher-priced music streaming plan. This plan could cost up to $20 a month. This could include a headphone tuner and a more interactive experience. However, these new plans would not impact students who have been using the service for free.
Spotify CEO Daniel Ek has discussed the potential price increases. Ek says that the company’s price hikes are a contractual challenge, but that it is a part of a larger effort to gain an edge on its own platform.
According to Spotify’s earnings release, its revenue grew to $2.9 billion. Its stock added $5 billion in value, pushing its market cap to above $50 billion.
Future price hikes
Despite the company’s strong performance in its core business, Spotify is still vulnerable to competition. It competes with Apple Music and Netflix. Both of these companies have announced price hikes in recent months.
Spotify CEO Daniel Ek recently announced that the company would add 7 million paid subscribers by the end of the third quarter of 2022. Ek declined to specify how much the price increases would be. Nonetheless, Spotify’s total revenue is expected to grow to $25.3 billion by 2027.
Premium subscribers represent the largest share of Spotify revenue. In the first quarter of 2021, Spotify had 182 million premium subscribers. The company’s total premium subscribers are expected to increase to 402 million in 2027. This implies premium revenue will equal 87% of the company’s total revenue. In addition, Spotify’s premium ARPU grew 3% in the first quarter. This implies premium revenue will equal $54 per premium user.
Despite the slow growth in user numbers, Spotify exceeded expectations in terms of revenue growth. The company reported a 20 percent increase in total active monthly users and reported a 13% growth in premium subscribers. The company’s gross margin declined due to increased publishing rates. Nonetheless, Spotify management guided for 2Q22 gross margins to be in line with 1Q22.
The company plans to expand its original content offerings. It is also investing in podcasts. Podcasts are distributed in 16 markets. In addition, Spotify recently launched an audiobook division with 300,000 titles. The company’s podcasts have also been adapted into films and television series.
As for competition, Spotify’s biggest competitor is Apple. Apple has announced price hikes for Apple Music and TV+ in the past month. Netflix has also announced price increases for some subscription services in the past year.
The company is known for its premium content. The company also offers ad-supported streaming. While the ad-supported option does allow users to skip ads, some users may decide to leave if they believe the company is not doing enough to prevent ads from appearing. Consequently, there is a risk that Spotify’s premium subscribers will not want to pay for an ad-free experience.
