Spotify Raises Prices on Some Subscription Plans

Spotify says it is updating its prices 'to reflect local macroeconomic factors and meet market demands.'
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Spotify Technology  (SPOT) - Get Report advanced after the audio-streaming platform said it was increasing some of its prices in the U.S. and the U.K. starting April 30.

Shares of the Luxembourg company at last check were up 4.2% to $296.11.

The subscription for Spotify's Family Plan subscription in the U.S. increased by $1 to $15.99 a month, while its U.K. plan prices have been raised across its Student, Duo and Family Plan subscriptions.

Student and Duo monthly plans in the U.K. will now cost 5.99 pounds, or about $8.32, and 13.99 pounds, or about $19.44, respectively. They're up by a pound from the earlier plan. The Family Plan has been raised by 2 pounds to 16.99 pounds a month.

Current paid subscribers in the U.K. have a one-month grace period before the new prices come into effect, while U.S. users will have two months,

“With more than 70 million tracks and 2.2 million podcasts, Spotify continues to innovate and invest in providing our listeners with greater value than ever before, including the best audio content and user experience," Spotify said in a statement to Variety. 

"We offer a variety of subscription plans tailored to our users’ needs, and we occasionally update our prices to reflect local macroeconomic factors and meet market demands while offering an unparalleled service.”

Spotify is scheduled to report earnings on Wednesday.

Last week, Jefferies began coverage of Spotfiy with a buy rating and $360 price target. The company will probably turn into “the primary audio platform for creators,” Jefferies analyst Andrew Uerkwitz said in a research note.

Last month, Spotify said that it planned to buy Betty Labs, the company behind the audio social app Locker Room, media reports say.

In February Spotify reported a wider-than-estimated fourth-quarter loss and predicted first-quarter revenue that trailed expectations.

Demand for digital entertainment has soared during the COVID pandemic, as consumers were forced to spend more time at home. 

Last week, Netflix beat Wall Street's first-quarter earnings estimates, but subscriber numbers that fell well short of expectations.

Separately, Facebook  (FB) - Get Report introduced a new miniplayer that will stream Spotify within the Facebook app. 

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