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An RGM Deep-Dive Into Spotify’s Latest Price Rise
Spotify recently implemented its second major round of price hikes in under two years, significantly increasing rates in Benelux countries and signaling further rises across Europe and Latin America.
This aggressive pricing strategy follows Spotify's first full-year operating profit in 2024, indicating a strategic shift from subscriber growth to boosting ARPU and profitability. The company is employing a "ladder pricing" approach, testing price elasticity in smaller markets before wider rollouts to manage churn and investor expectations. However, this creates widening price gaps with competitors, forcing Spotify to increasingly rely on its unique value proposition and bundled offerings like the planned "Music Pro" add-on.