Reported 1 day ago
Spotify CEO Daniel Ek has defended the company's strategy of implementing slower price hikes, emphasizing long-term customer retention over quick financial gains. Following disappointing quarterly earnings, Ek explained that retaining customers is crucial for subscription businesses, arguing it's more beneficial to keep users rather than risk losing them and attempting to win them back later. Despite recent price adjustments, Spotify continues to face pressure on its margins, with analysts suggesting a more aggressive pricing approach amidst increasing competition.
Source: YAHOO