Spotify raises prices in Benelux, while dropping its Mini tier that offered short-term, budget streaming solutions for emerging markets.

Spotify has once again raised its subscription prices, this time across the Benelux region (Belgium, the Netherlands, and Luxembourg). Implemented in early April, the streaming platform giant has also quietly discontinued its budget-friendly “Mini“ tier in several emerging markets.

Price increases across Belgium, Netherlands, and Luxembourg

Users in the Benelux region are seeing higher monthly costs for Spotify subscriptions. While the price rises may seem minor, they follow a trend of incremental increases that have occurred on multiple occasions in recent years.

Here are the new monthly prices:

  • Individual plan: €12.99 in the Netherlands and Luxembourg (€11.99 in Belgium)
  • Student plan: €6.99 across all three countries
  • Duo plan: €17.99 (€16.99 in Belgium)
  • Family plan: €21.99 (€20.99 in Belgium)

Given Spotify’s sheer scale, it is hard to track where, when, and what price increases Spotify are implementing across the globe. In this instance, Spotify has likely taken cues from competitors’ price rises, giving the company confidence to push higher prices without losing subscribers.

Mini tier discontinued in emerging markets

Spotify has also quietly scrapped its Mini tier – a low cost, short-term subscription that allowed users to purchase daily or weekly plans on mobile in countries like Egypt, India, and South Africa.

Coming at a fraction of the monthly cost and offering immense flexibility, this was the go-to plan for users with limited disposable income. Unsurprisingly, the decision has been met with backlash for users reliant on this subscription option, with users sharing their frustration over the loss of the flexible and affordable streaming option via Spotify’s help board.

A sign of Spotify’s broader strategy?

Both of these changes hint at Spotify’s broader strategy to boost revenue across both established and emerging markets.

In established markets

With streaming growth slowing in regions like the Benelux, Spotify is trying to increase revenue per user. While product enhancements such as those suggested under “Streaming 2.0” and the rumoured “Super Premium” tier can enhance revenue, it can also be maximized through its exciting service. Price hikes are a key part of this strategy.

Despite calls last year to start charging for ad-supported “Freemium” plans, Spotify has so far resisted. The company has also recently denied rumours of adverts coming to its Premium plan. They have, however, doubled down on advertising. The streaming platform recently launched the Spotify Ad Exchange, offering a market place for advertisers to purchase audio, video, and display ads more effectively. Spotify will be hoping that enhanced ad tools will improve the monetization across its ad-supported subscription.

In emerging markets

While streaming volume is growing rapidly in emerging markets, revenue has not kept pace. The Mini tier served as an entry point for users with limited disposable income, helping to increase streaming adoption. Although usage of this tier helped drive streaming growth in these markets, it didn’t translate into significantly boosted revenues.

The cancellation of the Mini tier suggests Spotify is seeking to nudge listeners towards higher-value monthly plans. Whether this shift will succeed in converting users remains to be seen.

What could this mean for the music industry

Spotify has so far resisted charging for its ad-supported Freemium plan, but that opportunity remains open- just like the potential for adding ads in Premium. Dropping the Mini tier could signal a shift away from budget options in favour of higher-priced plans.

With rumours intensifying about Spotify’s forthcoming “Super Premium” tier, the end of entry-level subscriptions could set the tone for the industry, pushing toward greater revenue from paid listeners.

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