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Cost of Spotify Premium for different countries in relation to USD.

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Re: Cost of Spotify Premium for different countries in relation to USD.

Newbie

The answer is very simple but it is simply never told. Prices are never caluculated based on costs, they are based on the offer/demand balance wich translate into : How much are the users willing to pay.

Basically the calculation is price X qtt of users = maximum possible revenue. When price increases, qtt of users decreases. Every company simply tries to find the price that provides maximum revenue. And this price is different in every market.

 

Now the hard true: Companies don't exist to serve you. They exist to generate money to stockholders. They only serve you because your money is part of the equation. And, there is nothing wrong about this (as far as everything is lawfull).

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Re: Cost of Spotify Premium for different countries in relation to USD.

Music Fan
I'm sure you're right. That said, Australia's been screwed for years in this fashion and we're waking up to it. Especially given our currency has been over parity with the USD for a couple of years now...

I do wonder what spotify will do when the AUD dips below the USD ... Will they fall back on the buffer they've been charging, or will they just crank up the fees again?
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Re: Cost of Spotify Premium for different countries in relation to USD.

Newbie

Agree with the market pricing. This has always been true. And differrences increase when availibilty is scares. E-commerce and international  shipping has been a huge game changer for fysical goods. You can now buy directly from the cheapest market and have it shipped cheaply.

Now we need to look for the cheapest solution out there. Best product, lowest price. 

 

Stupid thing is that if you are American and buy your US premium account and move to australia you can keep paying the 9,99USD per month for the rest of your live. 

 

"Listening to Spotify abroad
If you have a Premium or Unlimited account, you can listen abroad for as long as you like. Spotify Free users can listen for 14 days."

 

 

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Re: Cost of Spotify Premium for different countries in relation to USD.

Gig Goer

Am I right in noticing that the cost of Spotify Premium in Mexico is set to 10 EUROS?! If so, why on earth is the price in Euros, and not US Dollars or Pesos? This seems like a huge rip-off to me.

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Re: Cost of Spotify Premium for different countries in relation to USD.

Music Fan

Will be interesting to see now that AUD has dropped below parity with USD if Spotify try to recoup additional funds and blame it on exchange rate or keep the price set.

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Re: Cost of Spotify Premium for different countries in relation to USD.

Newbie

I do not work at spotify but I have an educated guess for the reasons of the price variation.

 

I think it has to do with the number of users and the infrastructure set up in those countries. There is a lot of data being set around so one way to cut latency is to store cache's of the data (in this case, music) in server locations around the globe.

 

So when a user connects from U.S. in California, there is most likely a server in California near their location which they can steam their data from instead of all streaming from the same location (whereever Spotify's headquearters may be). So the more of these servers they have the better service they can provide. 

 

There is more of this infrastructure set up in the U.S. because it is where Spotify started and that where the most user's currently are so it makes sense to invest in infrastructure here in the U.S.

 

You can think of it as supply and demand:

In other countries where they are still building up infrastructure there is LOW SUPPLY of connection availablity. Therefore they raise prices because of demand and also use the money to build more infrastructure in order to provide for increases in demand as it becomes more popular in different countries.

 

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Re: Cost of Spotify Premium for different countries in relation to USD.

Spotify
Spotify

Hi everyone! Just want to jump in here to clear up some theories bouncing around this thread. 

 

Each time Spotify launches in a new territory we need to negotiate with that country’s record labels and other rights holders in relation to music licensing fees. 

We set our pricing at the level that we believe is fair for consumers, rights holders, and Spotify, while remaining a low-margin business.


Also, just to clarify, Spotify headquarters are in Sweden 🙂

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Re: Cost of Spotify Premium for different countries in relation to USD.

Community Legend

No, I suspect it's just based on what the local market will stand. Premium in Poland is PLN 19.99 which is cheaper than USA.

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Re: Cost of Spotify Premium for different countries in relation to USD.

Newbie
The reason for the price difference in different countries is ; the Taxes rate of each country,
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Re: Cost of Spotify Premium for different countries in relation to USD.

Music Fan

You're assuming the payments go through the local country.

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