Spotify Is Going To Raise The Price In 2023

Paying for any Spotify music subscription plan could get more expensive in 2023. On January 25, the company said it should raise prices for services in markets such as the US, which have remained unchanged since the music streaming app launched in the US market in 2011.

According to Daniel Eck, the company’s president, the cost of the plan should exceed $10 in the second half of 2023. The founder of the world’s most popular music streaming service briefed investors on the goal during a meeting following the release of the balance sheet.

Recall that the Swedish green giant was forced to announce a reduction in its staff by 6%. As a result, 600 employees of the streaming company around the world will be laid off.

Ek’s statement also comes at a time of tension with Apple over the California brand’s store app. Spotify recently bought an audiobook division to offer subscription books on the platform. When purchasing a copy, the app is redirected to the website in the browser to complete the purchase – Apple charges a 30% fee for in-app transactions in the store.

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At the same time, Spotify tried to maneuver to get away from the tariff, but the tech giant’s management did not like it, and transactions outside the app store were prohibited.

According to the Wall Street Journal, an Apple spokesman said the decision was made because Spotify did not follow guidelines for “explicit in-app messaging to direct users outside of the app” for digital purchases. Thus, Apple Music, which is Spotify’s main competitor worldwide, not just in the North American market, is trying its best to block the development of the audiobook segment of the Swedish streaming platform in the United States market.

So far, Spotify rates are lower than Apple Music rates in the United States. Of course, this is an important competitive advantage. But, apparently, this advantage will soon be leveled by the rise in the cost of subscribing to Spotify services.

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