Tuesday, November 3, 2020

Spotify CEO confirms that more price increases are on the way | Music Ally

Spotify CEO Daniel Ek has confirmed that the streaming service will be expanding its tests of increased prices for its family subscription plan.

“Initial results indicate that in markets where we’ve tested increased prices, our users believe that Spotify remains an exceptional value and they have shown a willingness to pay more for our service,” he told analysts in yesterday’s earnings call.

“So as a result, you will see us further expand price increases, especially in places where we’re well-positioned against the competition and our value per hour is high.”

Ek also revealed that Spotify has paid out more than €1bn to music rightsholders in every quarter so far in 2020, and is on track to add another €1bn-plus in Q4.

There was more on the family plan when analysts questioned Ek and chief financial officer Paul Vogel: one analyst suggested that around 40% of Spotify’s ‘subscribers’ are on family plans, but Ek declined to confirm any figure, saying just that “family plan has grown as a percentage of the overall user base, and it is a decent amount of our users right now”.

Meanwhile, Vogel offered a bold ambition for Spotify’s advertising business, which is currently less than 10% of its revenues. “Could it be 20%? I think 100% it could.”

Stuart Dredge

[from https://ift.tt/2vCxqPg]

No comments: