Music streaming platform Spotify has announced its first price increase in over a decade for its 200 million ad-free subscribers. The cost will rise from $9.99 to $10.99 in the US for individual plans, and similar price hikes will be implemented in the UK, Canada, Australia, and 49 other territories.
Spotify attributes the price adjustment to its desire to continue innovating and delivering value to its fans and artists. Other streaming services have also raised their subscription costs recently.
The Premium Duo plan in the US will increase from $12.99 to $14.99, the Family plan from $15.99 to $16.99, and the Student plan from $4.99 to $5.99. In the UK, Premium subscribers will pay an additional £1 per month.
The price increase will take effect after a one-month grace period for existing subscribers, giving them the option to cancel before the new price comes into effect.
Spotify’s move aligns its Premium cost with competitors like Apple Music and Amazon Music, whose monthly plans match the new price point.
In an earnings call earlier this year, Spotify’s CEO, Daniel Ek, indicated the company’s intention to raise prices in 2023, believing that customers will appreciate the increased value they receive.
Despite the price increase, Spotify will continue to offer a free plan supported by advertising. The platform boasts 515 million active users across 180 markets, with approximately 40% being subscribers.
