Spotify, the global audio streaming giant, has announced a significant price hike for Premium subscribers in Nigeria, raising the cost by over 40%. The new pricing, effective from November 2024, will see the monthly subscription for Premium Individual jump from ₦900 to ₦1,300. This increase is part of Spotify’s efforts to continue enhancing its product offerings and user experience.
Reason for the Price Hike
Spotify stated that the price hike will allow the platform to invest further in product innovation and offer more features that enhance the user experience. The company added that if users choose not to continue with the new pricing structure, they can cancel their subscription via their account page.
New Feature: Offline Backup
Alongside the price increase, Spotify has introduced a new feature for Premium subscribers globally called Offline Backup. This feature allows users to listen to music offline without downloading it, as long as they have recently listened to more than five songs and have offline listening enabled. The Offline Backup feature automatically appears on the user’s Home feed when they go offline.
Spotify’s Expansion in Africa
Despite the price hike in Nigeria, Spotify continues to make strides in expanding access to its platform across Africa. In November 2023, Spotify partnered with Orange, a French telecommunications company, to offer free music streaming to users in Democratic Republic of the Congo, Madagascar, and Mali. This initiative contrasts with the price increase in Nigeria and demonstrates Spotify’s strategic focus on increasing its presence in new African markets.
Broader Context: Rising Subscription Costs in Nigeria
Spotify is not the only service provider increasing its subscription fees in Nigeria. In July 2024, Netflix, the leading video streaming platform, implemented its second price hike in just four months. Netflix’s Premium Plan subscription rose by 40%, going from ₦5,000 ($3.14) to ₦7,000 ($4.40) per month. This followed an earlier increase in April 2024, when the Premium Plan increased from ₦4,400 ($2.76) to ₦5,000.
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Similarly, Starlink, an Internet service provider, has significantly raised its subscription prices in Nigeria. Effective October 31, 2024, Starlink doubled its prices due to “excessive levels of inflation.” The standard residential plan, which comes with a 1TB fair usage policy, increased from ₦38,000 ($24) to ₦75,000 ($48), while roaming customers saw their price soar from ₦49,000 to ₦167,000 monthly.
Criticism of Regulatory Double Standards
Starlink’s price increase has sparked criticism from stakeholders in the Nigerian telecom sector, who accuse the Nigerian Communications Commission (NCC) of applying double standards. According to industry leaders, while Starlink was allowed to raise its prices by nearly 100%, local telecom operators have been denied requests to adjust their tariffs despite facing similar operational cost increases. Stakeholders argue that this policy unfairly disadvantages domestic operators who have invested heavily in expanding telecom services across Nigeria.
Conclusion
The recent wave of subscription fee increases across various services, including Spotify, Netflix, and Starlink, reflects broader economic pressures such as inflation and the rising costs of operations. As consumers in Nigeria adjust to these higher prices, the debate surrounding regulatory fairness, particularly in the telecom sector, continues to intensify. At the same time, platforms like Spotify continue to expand and innovate, delivering new features such as Offline Backup, while also seeking to capitalize on untapped markets across the African continent.