Spotify insisted that its recently-announced price hikes would not have a harmful impact on its recent subscriber growth. This comes after shares in the music streaming platform slumped to their lowest level since mid-December on Monday.
On Monday, Spotify announced that it would be implementing a price increase to its subscription plans in the U.S. as well as several other territories, including France, Hong Kong, New Zealand, Peru, Spain, and the U.K.
“Our data would suggest that historical price increases have had minimal impact on [subscriber] growth,” Spotify CFO Paul Vogel stated during the company’s second-quarter earnings call on Tuesday. “But given the breadth of this change and the significant outperformance in the first half of the year, there is some conservatism baked into our outlook for Q3.”
The company expects its subscriber base to rise to 572 million in the third quarter, with premium subscribers expected to reach 224 million. Spotify CEO Daniel Ek revealed his satisfaction with the recent price rise, especially since competitors Apple Music, Amazon Music, and YouTube Music revealed their own planned price hikes.