Spotify has elevated the price of its Family Plan in Australia from AUS $17.99 to AUS $18.99 (roughly US $13.69), efficient October 1 for brand new subscribers.
The change for current Family Plan subscribers will reportedly come into impact after their particular person billing date in November.
Launched in 2016, Spotify’s Premium Family Plan permits subscribers so as to add as much as six people to their account.
We’ve written beforehand about how Spotify doesn’t precisely love ideas that it ought to elevate its subscription costs, regardless of of this being one technique to curb declines in ARPU – the common income paid every month by its Premium subscribers around the globe.
The delicate price improve in Australia this month will possible be seen as a optimistic signal for traders and rightsholders of additional price rises in future.
“To continue offering a unique service, we increased the price of Spotify Premium Family for new users in Australia from $17.99 to $18.99 on October 1.”
Referring to the Australia price rise, a Spotify spokesperson mentioned the streaming service’s “pricing varies across regions, reflecting local macroeconomic factors, as well as our commitment to bringing both the best audio content and the highest value to our subscribers with much more to come in the future.
They added: “To continue offering a unique service, we increased the price of Spotify Premium Family for new users in Australia from $17.99 to $18.99 on October 1.
“Existing subscribers have a one month grace period and will see the price change on their next billing cycle after November 1.”
Spotify’s Premium month-to-month ARPU fell by 7% at constant currency, year-on-year, to €4.42 in Q1 2020.
We noted on the time that this decline marked the primary time ever that Spotify’s official ARPU had fallen to lower than half the corporate’s commonplace €9.99-per-month subscription price.
In April, when SPOT boss Daniel Ek was requested on the corporate’s Q1 2020 earnings name if Spotify would possibly think about altering its commonplace pricing in the “upcoming months and years”, he mentioned: “No, again, our primary strategy is growth”.
Added Ek: “As we said before, rather than maximizing revenue [we are focused on] this amazing opportunity of moving [people] from radio to on-demand audio; that’s the trend line that we’re trying to capture and that’s what you’re seeing us go after.
“We have made small pricing experiments in some of our more mature markets and obviously due to inflation you’ve seen us adjust pricing in some [other] territories too. The response from those have been very positive, but it’s not something that we’re focusing on in the short term.
“[However], it’s definitely encouraging to see that we have that opportunity for when the economy improves, and we feel that’s the right trade off to make.”
One of these markets to see a pricing experiment was in Norway in July 2018, the place SPOT’s standard Premium, student and Family Plans were increased by 10% and have actually remained 10% higher ever since.Music Business Worldwide