Price Elasticity of Demand

For 12 years, Spotify Premium cost the same $9.99 in the United States. The price had been frozen since launch in 2011. Daniel Eck and his executives were nervous about a single fact. They did not know how many subscribers would walk if the monthly bill went up. In July, 2023, Spotify finally raised the individual plan to $10.99. The first price increase in the platform's history. 12 months later, in June 2024, they raised it again to $11.99. Just a few months after that, the family plan, the duo plan, and the student plan all moved up to. Subscribers barely flinched. Between Q1, 2023 and Q3, 2024, Spotify added roughly 40 million paid subscribers, growing from 210 million to 252 million.