Spotify Hikes Prices in Canada — Including An Over 15% Increase for Individual — Amid Streaming Tax Battle
Vancouver’s English Bay. Photo Credit: Mike Benna
Another day, another round of Spotify price increases, which are hitting packages across the board in Canada.
Impacted subscribers and regional outlets just recently identified the pricing adjustments in Canada, and the streaming service itself subsequently confirmed the move. The Spotify price increases have reached each available plan, including Student, in the nation of about 39 million.
Student – Up 6.68% to CA$6.39 (currently $4.72)
Individual – Up 15.47% to CA$12.69 per month ($9.37)
Duo – Up 19.35% to CA$17.89 ($13.22)
Family – Up 23.54% to CA$20.99 ($15.51)
Explaining the decision to materially raise prices, a Spotify spokesperson pointed to “local macroeconomic factors” as well as an effort to “meet market demands while offering an unparalleled service.”
Though those non-committal remarks don’t provide an abundance of context, “local macroeconomic factors” presumably refer, at least in part, to Canada’s controversial 5% tax on streaming services. Spotify and others are still pushing back against the relevant law, we reported last month.
Moreover, Spotify’s pricing maneuver is hardly without historical precedent. It was only in May that the platform elevated its prices in France following the rollout of a similar (decidedly contentious) additional tax on revenue.
Of course, as illustrated by the above percentages, today’s jumps in Canada are larger than 5%. But as we highlighted in July, Spotify subscribers in the nation were paying noticeably less (to the tune of about $8 monthly for Individual pre-hike) than U.S. subscribers given the CAD-USD exchange rate.
This was more apparent yet after Spotify in June finalized another round of stateside increases, including to $11.99 for Individual and to $19.99 for Family.
Bearing in mind Universal Music’s slowing paid-subscription growth in Q2 and the broader H1 2024 subscription-addition slowdown in the U.S., the time is apparently right for the market leader to continue embracing higher-cost plans in well-established music spaces.
Furthermore, despite the second-quarter streaming plateau, Universal Music is banking on solid subscription-revenue expansions for years to come. And with taller-than-ever expectations for emerging markets, which are comparatively difficult to monetize, attempts to squeeze extra value from mature music industries might not be limited to price increases on subscriptions.
Moving forward, it’ll be interesting on multiple levels to track all the involved steps – as well as the exact developments and financial results they bring about. Adjacent to these main developments and financial results, however, the Spotify-driven shift could also usher in streaming market-share changes.
We previously noted that Apple Music holds a slight lead over Spotify in terms of total Individual subscriptions in the U.S., and the Apple-owned platform is still charging less than its rival in the States. Plus, with Spotify’s price bumps in Canada, fans are now paying nearly CA$2 more per month for Individual on the service than on Apple Music.
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