top of page

Insight of the Day: Spotify’s Price Hike Is Unpopular With Consumers—But Will They Unsubscribe?


  • Spotify has increased prices across all subscription plans, with some plans seeing a 20-30% increase in the past year.

  • Consumers are expressing dissatisfaction with the price hikes, citing concerns about the value proposition and lack of features they actually use.

  • Some consumers are considering switching to alternative music streaming services like Tidal or YouTube Music.

Key Takeaway:

Spotify's price increase has caused frustration among consumers, but the company may not see a significant number of cancellations due to the platform's entrenched features like playlist generation and AI DJ.


Streaming services are facing increasing pressure to raise prices due to rising costs and demands for higher royalty payouts to artists. However, consumers are becoming more price-sensitive and may be less willing to accept these increases without additional value or features.


While the initial reaction to Spotify's price hike is negative, the long-term impact on subscriber numbers remains uncertain. Spotify's ability to retain users will depend on its ability to justify the price increase by offering a compelling value proposition and addressing consumer concerns about bloat and unnecessary features.

Implications for Brands:

  • Price Sensitivity: Brands need to be mindful of consumer price sensitivity and consider the impact of price increases on customer retention.

  • Value Proposition: Companies must clearly communicate the value their products or services offer to justify price increases.

  • Feature Relevance: Brands should focus on developing and highlighting features that are most relevant and valuable to their target audience.

  • Customer Feedback: It is crucial to listen to customer feedback and address concerns to improve customer satisfaction and loyalty.

  • Competitor Analysis: Companies should monitor competitor pricing and offerings to ensure they remain competitive in the market.


bottom of page