Spotify, do you know? It is one of the many music streaming services, one of the first. The company, which took advantage of the crisis and the confinement to increase the number of subscribers, announced price increases for its subscriptions … which could scare some away and slow down others. But, for the moment, France is spared.
Spotify lost over half a billion euros in 2020
The results for 2020, marked by Covid-19 and confinements, are mixed, for Spotify: the group has certainly increased its subscriptions … but also multiplied its losses.
At the end of 2020, the service had 345 million active users, up sharply: + 27%. A situation in line with analysts’ forecasts. But Spotify even gave itself the luxury of beating predictions for paid subscribers, the ones that earn it the most revenue: they reach the number of 155 million, up 24%.
At the same time, however, operating costs skyrocketed… and the company lost a lot of money. While 2020 sales were up 16.5% to € 7.9 billion, the net loss almost tripled and reached 581 million euros.
A price increase to increase your income?
Faced with these losses, and while Spotify expects another year in deficit in 2021, the group has announced an increase in its prices in the United States and in Europe. On the old continent, three packages are increasing: the student package will cost 1 euro per month more expensive, i.e. 12 euros per year more, to 5.99 euros per month, the Duo Premium sees its price increase in the same way, to 12.99 euros per month, while the Family package climbs by 3 euros per month (36 euros per year) and reaches 17.99 euros per month. Only the Personal subscription does not change.
But the French would be spared, at least for now: Spotify wanted to be reassuring to several media. But nothing will prevent the group from smoothing European prices thereafter.