Spotify is hiking the cost of its paid subscription plans for the first time since 2011.
👉 Background: Spotify is the streaming company that shook up the music industry in the late 2000's... the same company that pays most artists less than half a cent per stream.
👉 What happened: After years of strong growth, Spotify released its second-quarter results... while active users jumped 27% year on year, its net loss jumped to over 300 million euro. Yikes.
👉 What else: To solve this problem, Spotify is hiking the cost of its paid subscription plans for the first time since 2011 - and this includes Australian subscribers. So it's fair to say that the days of lengthy free trials and extra-low prices are pretty much all over red rover.
💡Streamers appear to have ended their era of generosity. It's been more than 10 years for many of these streaming services, and many are still not making a profit.
💡Cases in point:
💡Streaming companies are now looking for ways to limit their continuously-widening losses. This means cutting staff and reducing the volume of content that they produce. But also... it means raising streaming prices.
Sign up for Flux and join 100,000 members of the Flux family
