Spotify announces price hike for subscription fees

Spotify has announced that it will increase its individual premium subscription fees starting in September. The company stated that this decision is aimed at increasing profit margins. According to the new pricing, the individual premium subscription fee will rise from 10.99 euros to 11.99 euros. This change will apply to a wide geographical area, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.

Spotify plans to send notification emails to its subscribers regarding the price increase within the coming month. Following the decision to raise prices, Spotify shares gained approximately 3% in pre-market trading. Since the beginning of the year, the company's shares have increased by 40%. However, financial reports released last month revealed that quarterly profit expectations fell short of analyst estimates. This situation, coupled with the impact of taxes related to rising employee salaries, created pressure despite the increase in demand for music streaming.

News Source: 12punto