Spotify Hikes Subscription Prices in South Africa and Nigeria
Digital music streaming giant Spotify has implemented another price increase for its subscription plans in South Africa and Nigeria. This marks the second price adjustment within a short timeframe, following an earlier increase in September. These changes come as Spotify celebrates its first profitable year and continues to expand its footprint in the growing African market, highlighting the importance of this region to its global strategy.
Price Increases and Regional Impact
Nigerian users on the Individual Premium plan will now be charged ₦1,600, equivalent to approximately $1.11, a rise from the previous price of ₦1,300 ($0.9). South African subscribers are also affected, with the Individual plan now costing R69.99 ($4). This is after an earlier increase from R64.99 ($3.8). Spotify has also introduced new features in South Africa to justify the price adjustments, including improved audio quality and a wider variety of subscription options. Despite Africa not yet being a major contributor to Spotify’s global revenue, the company is seeing growth in the continent and recognizing its significance.
The platform’s payouts to Nigerian and South African artists are another important aspect of the African market.
Spotify’s profitability milestone, with a net income of €1.14 billion ($1.7 billion) in 2024, after years of financial losses, demonstrates the company’s strong performance. The adjustments in subscription prices in Nigeria and South Africa reflect Spotify’s strategic approach to adapt to the evolving market dynamics and increasing costs while solidifying its presence in the region.
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