Previously, if such a family bundle was used by the maximum allowance of six people, it would have cost $34.99-a-month. Since May 2016, a family account on Spotify has cost $14.99-a-month in the US.
In addition, Spotify’s ARPS has been dragged down by aggressive price promotions, such as the three-months-for-$1 deal it regularly re-launches to try and tempt in new paying customers.Īnd then there’s Spotify’s global family plan, which became significantly cheaper last year in order to compete with Apple’s more competitive pricing. (Worth noting that Spotify’s biggest expansion move last year – its entry into Japan – came with a monthly premium charge of 980 Yen, or close to US $10 a month. There are a number of reasons for this drop in average per-user subscription spend – not least pricing and currency fluctuations in certain territories.įor example, Spotify expanded into Indonesia last year, where a premium subscription will cost you Rp 49,990 per month – the equivalent of US $3.80, or $46 a year. Using this calculation, we can see that in 2016 the average Spotify subscriber paid €54.97 ( US $60.84) – or €4.58 ( $5.07) per month. However, this number is inevitably a lower-end estimate – cross-pollinating, as it does, Spotify’s total revenue over 12 months with a subscriber base at its highest point in the year (ie. Meanwhile, the company’s total year-end subscriber base jumped by a record amount – up 71% from 28m in 2015 to 48m last year.īefore we get into what that means in terms of individual subscribers, a small caveat: by dividing the total year-end subscriber base by the annual subscription revenue, we get a useful ARPS (Average Revenue Per Subscriber) figure.
The average amount of money being paid for an annual Spotify subscription has fallen by more than US $30 since 2013.Īccording to Spotify’s latest annual report, its subs revenue rose by over $1bn in 2016 – up 52% year-on-year to €2.64bn ( $2.9bn).
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