A new analysis of 7000 Spotify users has found that consumers are actually willing to pay a lot more for the music streaming service than they’re currently being charged. ProfitWell, a subscription metrics platform collected the data from active paid users of the platform.
The single user account price is pretty much the exact price users are willing to pay – $10.04 according to the analysis, where Spotify charges $9.99. But apparently consumers are willing to pay $19 for the family plan which includes 5 different users. That’s more than 25% higher than they’re paying now.
But despite that, the price increase might not be on Spotify’s mind just yet.
According to HypeBot:
Spotify has gone strong on acquisition. With rivals entering the market, the company also has to think about retention constantly. Both of these factors are keeping pricing low. But eventually, acquisition will become more costly, and that is when you need to bring a strong monetization strategy to bear. At the moment, Spotify doesn’t have one.
With the date of their public listing on the New York Stock Exchange and shareholders looking for profitability, however, things may change in the future.