Spotify is set to test a price increase for its family plan, upping the cost by around 13% in some Scandinavian markets, Bloomberg reports. The price increase is designed as a limited test to figure out whether it might be able to roll out higher pricing for its service globally. The report notes that the higher prices might not be made permanent or roll out anywhere else, depending on the result of the limited test.
The music-streaming company is likely trying the rate increase in the Northern European region first since it has a strong foothold there.
“The test doesn’t mean Spotify will raise prices elsewhere or do so permanently in Scandinavia,” the sources said. Much will depend on how the test goes.
A family plan currently costs $15 and allows up to five people access to the subscription. A 13% hike would equate to about a $2 increase.
The potential rate increase could be due to the downward trend seen when looking at revenue per listener (above). Since 2015, that ratio has dipped roughly 2 euros per user. This trend is due at least in part to the family plan gaining ground.
Additionally, the company began testing Spotify Duo back in March which it offers for €12.49 ($14), which is only one euro less than the family plan. The price hike would widen the gap between the two subscription types without jostling the current subscribers too much.
