Market News

Spotify has raised its monthly subscription fee for premium subscribers to N1,300/month from N900 starting November 2024.

The music streaming service revealed this in an email to subscribers. “We’re increasing the price of Premium Individual so that we can continue to innovate on our product offerings and features and bring you the best experience,” it told subscribers.

While the company didn’t refer to the naira’s decline, it follows a trend of technology companies raising monthly subscription rates in Nigeria following the steep decline of the naira.

A 2023 Central Bank of Nigeria (CBN) unification of the foreign exchange market has triggered a sharp devaluation of the naira, which plummeted from N471/$ before the move to N1603.16 by October 21, 2024.

Top technology firms such as Netflix, Google, DSTV, GOtv, and Microsoft have raised their subscription prices in Nigeria due to galloping inflation (32.70 percent in September 2023) and the naira’s decline.

Netflix’s lower price band has increased by 83.33 percent, and its higher price band has jumped by 59.09 percent in less than six months.

“We offer a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more. Starting on 22 July, we’re adjusting prices in Nigeria with plans starting at N2,200,” a Netflix spokesperson told BusinessDay earlier.

“We understand the impact this change may have on you – our valued customer, but the rise in the cost of business operations has led us to make this difficult decision,” MultiChoice said.

Also, Starlink has had to increase the cost of its hardware by 115.25 percent to N590,000 to adjust to worsening economic conditions in Nigeria, with recent hikes causing outrage. The company blamed high inflation for its price hike.

“Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates…,” it said.