Is Spotify Hinting That It's Going to Raise Prices?
Spotify Technology (NYSE: SPOT) has been taking the streaming audio world by storm over the last several years by prioritizing relentless subscriber growth. The number of premium subscribers has increased more than six-fold over the last four years. But part of that growth has been driven by cheaper multi-user plans, which have driven down average revenue per user (ARPU).
Management has executed this strategy because the company is in the early stages of the land grab phase of the industry. As a result, management has repeatedly dismissed the idea of broad-based price increases. But is that changing?
Since Spotify went public in 2018, management has been laser focused on winning this land grab. Part of the strategy to accomplish that has been rolling out family, student, and "Premium Duo" subscription plans in more markets around the world. These plans are cheaper on a per-user basis than the standard premium plan that costs $9.99 per month in the U.S.
Source Fool.com
