Why Spotify Should Increase Prices (you heard us right)

Get the 5-minute newsletter keeping 2M+ innovators in the loop: https://thehustle.co/ Earlier this week, Spotify announced its third round of layoffs, following two rounds earlier this year that eliminated a combined ~800 jobs (or ~8% of its workforce). But it seemed like the company was bouncing back nicely: - Spotify’s most recent earnings report was a winner — its first profitable quarter since 2021. - The report shows monthly active users increased 26% YoY to 574m, despite price increases, and a 16% YoY lift in both premium subscriptions and advertising revenue. - And for the eighth straight year, the internet fell hook, line, and sinker for the viral marketing powerhouse Spotify Wrapped. The reward for the hard-working employees who made it all happen? A third round of layoffs for the year, with ~1.5k people getting the boot right before the holidays. Spotify, which bloated itself by nearly doubling its headcount between 2019 and 2022, is pushing hard for consistent profitability. This is rather normal for a company five years out from going public, as Spotify is. But why isn’t anyone addressing issues with its cost model? And should they just charge more? To learn more about the economics of Spotify and how little artists get paid, head to this link: https://youtu.be/v3ANMQOiWik.