Spotify is an app that provides the most popular music streaming services. Everyone knows this one. Spotify has about 108 million premium subscribers. The company that leads the app said that the increase in the number of Spotify users was recorded faster than its rival app, Apple Music. In the past, at the beginning of its release Spotify relied on discounts to retain users who subscribed.
Spotify Premium Plan
Reportedly, recently Spotify planned to raise the subscription price. Previously there were several packages offered to subscribe to Spotify, including:
A. Individual Premium Plan is priced at Rp 49.990 per month. If subscribing it will be free for one month. These rates are only applicable to new users.
B. Premium Package Day & Week bandrol with price starting from Rp 4.990 per day. This package is only valid with one-time payment at the specified time. If the time has expired, there will be no automatic renewal. The user must purchase the package back.
To subscribe for up to a week simply pay Rp 16.500. A one-month subscription can pay a one-time fee of Rp 54,990. If you want to subscribe for 3 months, you can pay Rp 164.970 for one payment. For the use of 6 months bandrol price rp 299.940 for one payment. Lastly, a subscription of up to one year can be one-time payment of Rp 499,900
C. Premium Family plan is priced at Rp 79,000 per month for new users only. This package is valid for up to 6 family members living at the same address. After the first subscription, then in the first month will be free for one month. This package also provides one-time payment where for one year is charged rp. 948.000. For 6 months it costs Rp 474.000 and for 3 months is charged Rp 261.000
D. Premium Duo package with a price of Rp 64.990 for new users. If you use this plan, it will be free in the first month after the first subscription. This package is available for two people staying at the same address. The price is valid in the first month.
E. Premium Student Package bandrol with price Rp. Its 24,990 per month is only available to new users, especially for students where Spotify provides discounts as long as it veers if the user is a student. Verification is done by following the prompts of the application.
As summarized by Loperonline.com from TechCrunch (4/11/2020) that the news was responded to by spotify’s CEO Daniel Ek. He said that during the company’s earnings call, in the third quarter of 2020, Spotify had managed to add up to six million subscribers. This is so that paying Spotify users reach a total of 144 million out of 320 million active subscription users.
Despite Spotify’s plans, Spotify’s share price has turned out to be lower, especially after the popular music streaming service failed in sales, reducing revenue. Therefore, by raising the price of his subscription, Daniel is very hopeful that if Spotify can later earn more revenue in well-positioned markets.
According to TechCrunch, Spotify has good reason to raise subscription prices. They consistently prefer loss despite having a basic as a music streaming app with the most users than other music streaming apps.
Prior to broadly raising subscription prices, Spotify had trialled subscription price increases in selected markets. Spotify’s main focus is to prioritize user growth in selected markets that are certainly advanced where the hourly value has been steadily increasing over the years. The service will mature and improve if it is focused on that market user so it is very confident that users will continue to pay for the streaming service when they have subscribed to Spotify. It turns out that the results obtained are positive value.
“While it’s still preliminary, the results show that if the market chosen as a price hike testing ground has users who remain convinced that Spotify still has great value and they are willing to continue paying more for subscription services than Spotify. So as a result, you will see us further expanding price increases in the markets we choose especially those that are in a strategic position in the face of our high competition and hourly value” said Daniel.
This price increase is only temporary because it is still in the trial phase. Regarding the price itself, Spotify did not detail how much it would cost after the subscription fee was raised, but they plan to raise the price more widely. Plans to raise subscription prices are certainly at the encouragement and confidence of users.
With rising subscription prices, of course, features and content that are only premium subscription users are also improved.
According to Daniel himself, improving content certainly has an effect on the development of Spotify’s content library, especially Podcasts because the service is arguably Spotify’s investment. Currently, Spotify not only provides music services, but also provides podcast services. Currently, Spotify has 1.9 million podcasts with 58 original and exclusive podcasts offered to 16 markets.
To date, Spotify has tested higher price increases in some markets. In 2019, Spotify tested price increases for Premium Family plans in the Scandinavian market by raising prices by about 13% from the starting price. It is done to find out whether or not Spotify is successful in offering higher service prices globally.
The latest news from Spotify, from October 1, 2020, has raised the price for premium family plans in Australia which originally paid aus $17.99 or equivalent to Rp. 186,947 to AUS $18.99 or equivalent to Rp 197,339. These rates apply to new customers who first sign up for a Spotify Premium account.
As of October 29, 2020, Spotify has noted that there are several markets that will also experience price increases including Belgium, Bolivia, Peru, Switzerland, Colombia and Ecuador. In addition to the Premium Family plan, Spotify also raised the price of the Premium Duo plan only in Colombia.
In Indonesia itself, this saaat price for Spotify Premium subscription in all plans has not increased, including Premium Family package. There is still no further information on the increase in the price of Spotify premium subscription for Indonesian users. For now, for early users of Premium Family plan is still priced at Rp 79,000 per month after a one-month free trial. That’s known from the Spotify app installed on your phone.
On the issue of when the plan will be realized for users around the world, Spotify has yet to provide further details. Especially in addition to the state of the world that is in the covid-19 pandemic where many people are losing their jobs so it is unlikely that someone will spend just for the sake of subscribing to Spotify because they have to save until they get a job back. So it’s highly unlikely that Spotify will raise subscription prices in the midst of this pandemic.
However, in a statement from Daniel Ek, spotify’s CEO looks like plans to raise premium subscription prices globally will be made. Maybe not anytime soon. It could be that the plan will be done after the normal situation returns where the case of the Covid-19 virus that is engulfing the world is gone.
That’s a bit of information about the news from Spotify that will drive up the price of its premium subscription. Hopefully what is reviewed in this article is useful for you especially for spotify premium users who will still subscribe or not after learning of the price increase in the premium account.