Spotify to rise prices, CEO Daniel Ek confirms

"I feel really good about our ability to raise prices over time..."

Spotify is planning to increase the price of its monthly subscription plans, CEO Daniel Ek confirmed yesterday. But only "when the timing's right".

It seems the streaming platform will respond to competitors such as Apple who have raised their subscription fees from £9.99 to £10.99 in recent times.

Ek says that the brand wants to raise the price of its monthly subscription but is in the process of waiting on deals with record labels before doing so. There have been some price increases already for some Spotify subscription plans in select markets, something the Spotify CEO is keen to remind people.

During an investor call, Ek said: “We did raise prices in 46 different locations and markets last year, and even in those markets we were still out performing. I feel really good about our ability to raise prices over time – that we have that ability – and we have lots of data now that backs that up”.

According to CMU he also added that the company may have been “marginally helped” by keeping prices low to date, “but it isn’t a primary part of our strategy and it’s not something that we’re thinking about. Instead, we’re working with our label partners … to figure out what’s the best opportunity to [raise the price]. And that’s a more complex trade. When the timing’s right we will raise it."

“I think we are ready to raise prices”, said Ek. “I think we have the ability to do that, but it really comes down to those negotiations [with the labels]”.

When exactly these price hikes will come into action is yet to be confirmed but it's looking like more and more likely to happen sooner rather than later.

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