The Optimal Price for a Subscription Business

Explore the impact of pricing changes to Spotify's premium subscription service.

Price Sensitivity Model for a Subscription Business

This Price Sensitivity Model is a user-friendly template that demonstrates the impact of subscription pricing on customer demand, using Spotify Premium as the example. This interactive model simplifies complex concepts like pricing sensitivity and demand curves, into easy to understand insights. It's interactive and explorable, see what could happen to overall revenue and the number of customers with changes to Spotify's premium subscription price.

Use this template to create your own pricing model Empower your team to make informed pricing decisions with models that are easy to play with and understand.

What are the benefits of using this template?

  • Customizable Inputs: This model makes assumptions around number of subscribers, pricing limits and convergence factors. Easily adjust these inputs or adapt them to your own needs.
  • Easily explore pricing scenarios: Play with different subscription prices within the model to see the impact on demand and revenue.