Top Investing Today
  • Investing
  • Politics
  • Stock
  • Economy
  • Editor’s Pick
  • Investing
  • Politics
  • Stock
  • Economy
  • Editor’s Pick
No Result
View All Result
Top Investing Today
No Result
View All Result
Home Editor's Pick

After missing Q1 user addition estimates, Spotify raises Premium prices in US

BoldThemes by BoldThemes
June 3, 2024
in Editor's Pick
0
After missing Q1 user addition estimates, Spotify raises Premium prices in US
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter
Image for Spotify stock

Spotify Technology S.A. announced on Monday that it will be increasing the prices of its Premium subscriptions in the United States starting in July.

The company cited the need to “continue to invest in and innovate on our product features and bring users the best experience” as the primary reason for the price hike.

New subscription rates and impact on users

The new pricing structure will see the individual subscription cost rise from $10.99 to $11.99 per month.

The Duo option, which caters to two users, will increase from $14.99 to $16.99. The Family plan, which allows up to six accounts, will go up from $16.99 to $19.99 per month. The Student plan will remain unchanged at $5.99 per month.

This announcement led to a 2.10% increase in Spotify’s shares in the premarket, reflecting investor confidence in the company’s strategic move.

User growth and financial performance

In April, Spotify reported that its quarterly monthly active users (MAUs) were below its own estimates.

The company has been focusing on boosting profitability over expanding its listener base through extensive marketing.

First-quarter MAUs rose by 19% but fell short of Spotify’s guidance and analysts’ forecasts of 618 million.

Spotify has forecasted MAUs for the current quarter at 631 million, below the estimate of 636.3 million according to IBES data from LSEG.

Despite the shortfall in MAUs, Premium subscribers, who contribute the most to Spotify’s revenue, increased by 14% to 239 million, aligning with market expectations.

Strategic cost-cutting and future outlook

Spotify has been implementing cost-cutting measures, including layoffs and reductions in its marketing budget, to enhance its profit margins.

These efforts are part of the company’s broader strategy to achieve sustainable growth and profitability.

The decision to raise subscription prices comes as Spotify seeks to balance the need for continued investment in new features and improvements with the financial realities of maintaining and growing its user base.

The company aims to leverage the additional revenue from higher subscription fees to fund further innovations and enhancements in its service.

The post After missing Q1 user addition estimates, Spotify raises Premium prices in US appeared first on Invezz

Previous Post

Warner Bros. Discovery’s stock: Long-term downtrend finally over?

Next Post

Has NXP Semiconductors’ stock hit a ceiling after the recent all-time high?

BoldThemes

BoldThemes

Next Post
Has NXP Semiconductors’ stock hit a ceiling after the recent all-time high?

Has NXP Semiconductors’ stock hit a ceiling after the recent all-time high?

  • Trending
  • Comments
  • Latest
The Connectivity Standards Alliance Product Security Working Group Launches the IoT Device Security Specification 1.0

The Connectivity Standards Alliance Product Security Working Group Launches the IoT Device Security Specification 1.0

March 19, 2024
Israel says UN ‘deceiving’ world over aid delays to Gaza

Israel says UN ‘deceiving’ world over aid delays to Gaza

March 28, 2024
Gold and Silver Set to Smash Records: Could 2024 Be Their Biggest Year Yet?

Gold and Silver Set to Smash Records: Could 2024 Be Their Biggest Year Yet?

May 17, 2024
Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

February 6, 2024

Foreign nationals charged amid Trump visa crackdown for scheme to smuggle US military equipment into China

0
Amid growing criticism of Biden foreign policy, experts credit wins while leaving room for improvement

Amid growing criticism of Biden foreign policy, experts credit wins while leaving room for improvement

0
Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

0
Precision Manufacturing For Sensitive Equipment With CNC Machining

Precision Manufacturing For Sensitive Equipment With CNC Machining

0

Foreign nationals charged amid Trump visa crackdown for scheme to smuggle US military equipment into China

June 2, 2025

SCOOP: House Freedom Caucus draws battle lines as White House readies $9.4B DOGE spending cuts

June 2, 2025

Tariff fight escalates as Trump appeals second court loss

June 2, 2025
Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

June 2, 2025
Enter Your Information Below To Receive Trading Ideas and Latest News

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent News

    Foreign nationals charged amid Trump visa crackdown for scheme to smuggle US military equipment into China

    June 2, 2025

    SCOOP: House Freedom Caucus draws battle lines as White House readies $9.4B DOGE spending cuts

    June 2, 2025

    Tariff fight escalates as Trump appeals second court loss

    June 2, 2025
    Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

    Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

    June 2, 2025
    • About Us
    • Privacy Policy
    • Terms & Conditions
    • Contact

    Copyright © 2024 Topinvestingtoday.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Politics
    • Stock
    • Economy
    • Editor’s Pick

    Copyright © 2024 Topinvestingtoday.com. All Rights Reserved.