Spotify just rolled back its 30% price hike in a key market

Source: Android Authority

TL;DR

• Spotify is cutting subscription prices by 30 % in a key market with an estimated 70 million users.
• The price cut reverses last year’s price hike.
• It comes months after a $1 hike in the US and around the time Spotify is exploring a similar hike in Ireland.

Price reduction in India

Spotify has revised its pricing in India:

• Standard Plan: reduced from ₹199 ($2.08) to ₹139 ($1.49) per month.
• Introductory offer: ₹99 (~$1.03) per month for the first three months (available only to first‑time subscribers).
• Student plan: lowered to ₹69 (~$0.72) per month.
• Platinum tier (Hi‑Fi playback + three family accounts) remains unchanged.

Spotify also removed the “Lite” plan, which offered ad‑free playback at up to 160 kbps and no offline downloads.

Comparison with the US price hike

Other plan changes

• The removal of the Lite plan simplifies Spotify’s tier structure in India.
• It is unclear whether existing subscribers will automatically receive the new pricing or must cancel and resubscribe.

Market implications

• India accounts for nearly 10 % of Spotify’s global user base of 761 million, making it a crucial market for growth—both in revenue and user count.
• Competing services such as YouTube Music and Apple Music are available through free carrier bundles, offering alternatives for price‑sensitive users.
• The earlier $1 price hike in the US was justified by Spotify as necessary to “continue offering the best possible experience and benefit artists.” That rationale may not translate to the Indian market, where low‑cost internet plans dominate.

While the price cuts make Spotify more attractive to Indian users, there is no indication that similar reductions will be applied to the US market. The move could, however, signal a broader trend of reversing recent price increases in competitive regions.