“When a company raises its prices, you’d expect its user base to go down. However, in the case of Spotify, we’re seeing the opposite. Spotify’s user base just grew after it raised its price, according to a new report.
If you’re a Spotify user, then you should be familiar with the prices for the service. The most basic single-person plan used to cost $9.99/month. However, Spotify recently raised the price to $10.99/month. That’s not the biggest price hike, but a higher price is a higher price.
Spotify’s user base grew amid the price hike
While the company hiked its price, not as many people dropped the service as many had thought. In fact, the number of subscribers and the number of monthly users rose. Spotify posted its Q3 2023 earnings report, and it shows some decently promising numbers. The company isn’t quite breaking records, but it performed a bit better than it predicted.
Spotify saw a 3% increase in its number of subscribers to 226 million users compared to Q2 2023. Again, any increase is impressive seeing as the company raised its price. Not only that but more people seem to want to use the app, as its monthly active user base (MAU) also saw a 4% increase compared to the previous quarter. It rose to 574 million.
Spotify’s numbers seem even more significant when you compare them to the same quarters last year. The platform’s number of subscribers rose 16% YoY (Year over Year), and its MAU rose a whopping 26% YoY.
More people are hopping onto Spotify as time goes on. This might be thanks, in part, to the company’s non-music content as well as its music. Spotify went waist-deep into the podcast market, and now it’s one of the leading podcasting platforms on the web. Not only that, but the company also offers audiobooks.
Truly stellar quarter. Improving step by step. Thanks to all Spotify teams around the world. pic.twitter.com/93duX6KlFk
— Daniel Ek (@eldsjal) October 24, 2023
Things seem to be looking up for Spotify. The company’s earnings this year are exponentially better than last year’s. According to the report, the company pulled in $69 million in Q3 2023. That’s a stark difference between the $177 million loss that it sustained a year ago.
2023-10-24 15:04:19