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.
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