Spotify ended the third quarter of this year with a loss, the cause must be sought in podcasts, among other things.
Spotify is very happy that Apple has raised the price of its streaming service (with a very small amount). According to the Swedes, this is good news for them because it means they can also raise the subscription price if they wish. And that seems to be much needed, as there has been a lot of investment in marketing and also a lot of money spent on podcasts and audiobooks. Now we would say: make a subscription for people who want to listen to both music and podcasts, with a ‘music only’ subscription in addition. But apparently that’s not how it works there. Especially now that the streaming service wants to focus on podcasts and audiobooks.
Price increase considered
Furthermore, advertisers have become reluctant to buy advertising time from Spotify. It all together led to a loss of 228 million Euros. Now, the company is considering – at least in the U.S. – actually raising subscription prices. See also the post here, at Dutch news site nu.nl.
