Spotify Is Hiking Prices On Its Premium Plans
Music streaming service Spotify announced today that it is raising prices for its premium plans. The price increase will impact a sizable number of users across 53 countries and territories — including the United States. Aside from the U.S., other important markets affected by this price hike include Australia, Canada, Denmark, Spain, Finland, France, the United Kingdom, Hong Kong, Israel, Iceland, Italy, Mexico, Netherlands, Norway, New Zealand, Sweden, and Singapore.
For U.S. users, prices for the individual premium plan (Premium Single) will increase from $9.99 per month to $10.99 per month. The cost of the family plan (Premium Family) will increase from $15.99 per month to $16.99 per month. Student plans will increase from $4.99 per month to $5.99 per month. While most prices have been hiked by $1, the prices of the Premium Duo plan have gone up by $2 — from $12.99 to $14.99
While the price hike isn't substantial, it also comes when Spotify faces increased competition from other streaming services such as Apple Music and Amazon Music, some of which have also hiked their prices recently. In the announcement, Spotify asserts that the price change will help the company deliver more value to fans and artists on its platform.
Spotify is contacting existing subscribers via email to announce the price hike is going into effect, and that the next month of billing for your account will be a grace period of the previous rate before updating to reflect the new Premium rates.
Spotify price hikes are rare
While Spotify has adjusted its pricing in different countries, the service is not known for frequently raising prices. For U.S users, the last significant price hike was in 2021, when prices for the Family Plan went up from $14.99 to $15.99. In contrast, the prices for the entry-level premium plan have remained unchanged in the U.S. ever since the service went live more than a decade ago.
In the past, Spotify has received criticism from some users, who argue that the service is becoming too expensive. However, Spotify has defended its pricing, arguing that it is necessary to cover the costs of licensing music and to invest in new features.
Despite the price increase, Spotify is expected to remain the world's most popular music streaming service. The company has over 381 million active users, including 172 million premium subscribers. Spotify's popularity is due to several factors, including its large music library, user-friendly interface, and competitive pricing. The company has also been successful in expanding its reach to new markets, such as India and Africa, where its low pricing strategy is likely to continue for the foreseeable future.