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 hike in its prices. Spotify joined the party earlier this year by increasing its subscription fees, but oddly enough, that doesn’t seem to faze us.
According to a new report (via The edge), Spotify Premium saw a 3% increase in subscribers, reaching a solid 226 million on a quarterly basis. The increase comes even as Spotify dropped the bombshell of price hikes in the United States and various global markets.
When you compare these numbers to the same time last year, it becomes even more impressive. Spotify’s subscriber count climbed 16% year-over-year, and monthly active users climbed 26% year-over-year.
In terms of profits, Spotify raked in around $69 million for the most recent quarter, a stark contrast to the previous year’s loss of $177 million. Operating profit was approximately $34 million, a significant turnaround from the operating loss of approximately $243 million in the same quarter a year ago.
In late July, Spotify embarked on a price increase, marking its first increase in the United States in more than a decade. The standard Spotify Premium subscription costs an extra dollar, now $10.99. Other marketplaces and subscription plans, like Duo, Home, and Student, also got a taste of the price adjustment.
Meanwhile, Spotify continues its momentum by refining its podcast and audiobook offerings. The company recently launched audiobooks for its premium subscribers, which quickly shook things up. The Swedish company took shots at Apple, accusing it of playing dirty with its App Store restrictions.
This feud between Spotify and Apple is not new; this dates back to 2019 when Spotify accused Apple of anti-competitive behavior within the European Union.
