Spotify said on Monday that its premium members would notice an increase in their fees starting in September worldwide. In premarketing trading on Wall Street, the company’s share price increased by more than 6% after the announcement, as of around 15.30 CEST. The company’s share price was hurt by a poor earnings report last week, which sparked this spike in investor interest.
The business projected quarterly earnings at the end of July that were below expectations. A portion of this was brought on by high payroll taxes, which came to €116 million and outpaced the rise in music consumption. The platform is making the subscription announcement as it continues to grow its product line and seeks to boost profit margins.
Customers in the Asia-Pacific, Europe, Latin America, Africa, the Middle East, and South Asia would be impacted by price increases on the individual plan. The monthly charges for European individual plan subscribers will increase from €10.99 to €11.99.
A corporate statement claimed that customers would get an email outlining the pricing adjustments over the following month. It is not yet known if users of other subscription options would be impacted as well.
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