Music streaming giant Spotify announced a 44% price increase for its Premium subscription in Nigeria. Starting November 24, 2024, the monthly fee will rise from N900 to N1,300. Spotify explained that the adjustment supports innovations in its product offerings and aims to enhance user experience.
Rising Subscription Costs: A Growing Trend
Spotify isn’t the only platform adjusting prices. In July 2024, Netflix raised its Premium Plan subscription by 40%, from N5,000 to N7,000. Previously, Netflix increased the Premium Plan to N5,000 in April and its Standard Plan from N3,600 to N4,000. According to Netflix, these hikes are part of its strategy to boost revenue and maintain competitiveness in Nigeria’s fast-growing market.
Similarly, Elon Musk’s internet service company, Starlink, recently increased its monthly subscription in Nigeria by 97%, moving from N38,000 to N75,000. The price of Starlink kits (hardware) for new users also surged by 34%, from N440,000 to N590,000. Starlink attributed the increase to “excessive inflation,” citing the need to adjust costs in response to market conditions.
Uber also notified its drivers of a 13% fare increase to help manage the effects of Nigeria’s recent fuel price hike.
Understanding Spotify’s Recent Price Increase
The recent wave of subscription hikes by Spotify, Netflix, Starlink, and others occurs as inflation rates continue to rise in Nigeria. Consumers are facing higher costs for essential goods and services. Once-affordable entertainment and internet services are now becoming increasingly difficult for households to sustain.
Pay-TV provider Multichoice, for instance, has implemented three price hikes this year, sparking frustration among subscribers. These adjustments reflect a global trend among streaming and internet service providers, with companies raising prices to support content offerings and maintain profitability amidst increased competition and economic challenges.
Spotify informed subscribers of the price change via email, stating: “Thank you for being a Premium subscriber. As of your billing date on November 24, 2024, your subscription price will change from NGN 900.00/month to NGN 1,300.00/month. 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.