Music  

Spotify increases premium subscription price by 44% to N1,300

By Kareem Azeez

24 October 2024   |   7:51 pm

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Spotify has announced a 44% price hike for its Premium subscription in Nigeria, effective November 24, 2024. The monthly fee will rise from N900 to N1,300, reflecting a broader trend of increasing subscription costs in the country's tech sector. In an email sent to subscribers, Spotify explained the reason behind the price adjustment, saying, "We’re…

Spotify has announced a 44% price hike for its Premium subscription in Nigeria, effective November 24, 2024. The monthly fee will rise from N900 to N1,300, reflecting a broader trend of increasing subscription costs in the country’s tech sector.

In an email sent to subscribers, Spotify explained the reason behind the price adjustment, saying, “We’re increasing the price of Premium Individual so we can continue to innovate on our product offerings and features and bring you the best experience.”

Nigeria is not the only country experiencing this price hike; in July, the platform increased prices for premium subscribers in the US and “across several markets around the world,” following similar moves by competing music services from Apple and Amazon.

Meanwhile, in April, the music platform reported a rare operating profit for the first quarter of 168 million euros ($179 million), a turnaround from a loss of 156 million euros in the same period a year earlier.

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It said the business had “performed well” in the quarter, “led by healthy subscriber gains, improved monetization, and record strength in profitability.”

Spotify reported 615 million active users at the end of the first quarter, of which 230 million were paying subscribers.

The company has invested heavily since its launch to fuel growth with expansions into new markets and, in recent years, exclusive content such as podcasts.

Despite its success in the online music market, it has never posted a full-year net profit and has only occasionally reported quarterly profits.

In December, the company announced it would cut staff levels by around 17% to reduce costs, following earlier layoffs in January and June 2023.