Spotify is raising its prices for Premium subscribers in most parts of the world, a move that comes right after a disappointing earnings report that sent its stock tumbling. The company’s CEO, Daniel Ek, even said he’s “unhappy” with its current performance.
The price increase, which appears to be about $1 per month, will affect users in South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region—in other words, pretty much most of the world. For now, the price for American subscribers will remain the same at $12 per month.
Spotify said it will be sending out emails to affected users over the next month to let them know about the change. A sample email shared by the company showed the price going from €10.99 to €11.99 in an unspecified European country.
The change isn’t a complete surprise. The Verge found that the new, higher prices have already rolled out in countries like Spain, Italy, and Portugal. The news comes after Spotify missed its revenue expectations, causing its stock to drop by 11%.
As Spotify seeks to increase revenue, CEO Daniel Ek has been expanding the company’s reach. He recently led a huge $694 million investment in a European defense startup, showing his focus is expanding beyond just music and podcasts.
