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Investing.com -- Spotify Technology SA (NYSE:SPOT) stock surged 5.4% following the company’s announcement of upcoming price increases for its Premium subscription service across multiple international markets.
The streaming giant revealed plans to raise Premium subscription prices over the next month in regions including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. Current Premium subscribers in these markets will be notified via email about the changes to their subscription rates.
While Spotify did not specify exact price increases for each market, the company provided an example showing a €1 monthly increase from €10.99 to €11.99 in an unspecified European country. This represents approximately a 9% price hike for that particular subscription tier.
The price adjustment comes as part of what Spotify describes as its commitment to "delivering a world-class, personalized experience" and to "continue to innovate on our product offerings and features." The company indicated that occasional price updates are necessary to bring users "the best experience."
This marks Spotify’s latest move to improve its revenue streams as the company continues to balance growth in its subscriber base with profitability goals. The market’s positive reaction suggests investors view the price increases as a favorable step toward enhancing the company’s financial performance.
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