Music streaming platform Spotify has announced a 44% price hike for its Premium subscription in Nigeria starting from November 24, 2024, the monthly fee will increase from N900 to N1,300.
The audio streaming giant explained that the adjustments are necessary to support ongoing innovations in its product offerings and enhance user experience.
Spotify communicated the change to its subscribers via email, stating, “Thank you for being a Premium subscriber. As of your billing date on November 24, 2024, your subscription price will change from NGN 900.00/month to NGN 1,300.00/month. We’re increasing the price of Premium Individual so we can continue to innovate on our product offerings and features and bring you the best experience.”
The trend of rising subscription costs
In July 2024, Netflix raised its Premium Plan subscription by 40% from N5,000 to N7,000 per month. This came after a prior increase in April, where the company adjusted its Premium Plan from N4,400 to N5,000 and its Standard Plan from N3,600 to N4,000.
According to Netflix, these price hikes are part of its strategy to boost revenue and maintain its competitive edge in a rapidly growing market like Nigeria.
Similarly, Elon Musk’s internet service company, Starlink, has increased the monthly subscription for its service in Nigeria by 97%, raising it from N38,000 to N75,000.
Additionally, the cost of the Starlink kits (hardware) for new users has surged by 34%, from N440,000 to N590,000. Starlink cited “excessive inflation” as the reason for this second increase in subscription fees in Nigeria, having previously reviewed the cost of its hardware both upwards and downwards.
Meanwhile, ride-hailing platform Uber has notified its drivers of a 13% fare increase to help cushion the impact of Nigeria’s recent fuel price hike.
What you should know
- The wave of subscription fee increases from Spotify, Netflix, Starlink, and other platforms comes amid ongoing inflation in Nigeria, where consumers are grappling with rising costs for basic goods and services.
- Entertainment and internet services, once affordable outlets for many, are now becoming increasingly out of reach for households. Multichoice, a major pay-TV operator in Nigeria, also implemented its third price increase within the past year, sparking negative reactions from subscribers.
- These adjustments reflect broader trends in the global streaming and internet service industry, with companies such as Netflix and Starlink raising prices in key markets to support their content offerings and maintain profitability amidst growing competition and economic challenges.