Music streaming service Spotify has announced another price hike for its premium subscription plans in the United States. This increase comes less than a year after the platform implemented a similar rise in July 2023.
The new pricing structure affects all tiers of Spotify Premium. Individual plans will increase from $9.99 per month to $11.99 per month, a 20% increase. Student plans will remain at $5.99 per month for eligible students. Duo plans, which allow for two users on one account, will rise from $14.99 per month to $16.99 per month. Family plans, catering to up to six users, will see the most significant jump, going from $15.99 per month to $19.99 per month – a 25% increase.
In a statement, Spotify explained that the price adjustments are necessary “to continue to invest and innovate on our product offerings” and “bring you the best experience”.
The price increase may affect user behaviour, potentially leading some subscribers to re-evaluate their music streaming subscriptions. Competitors like Apple Music, which currently charges $10.99 per month for individual plans and $16.99 per month for family plans, may see an influx of new users seeking more affordable options.
It is unclear how Spotify’s price adjustments will impact its long-term subscriber base and overall market share. The company will likely monitor user response and market trends to determine the effectiveness of this new pricing strategy. However, it is also worth noting that the price increase comes on the heels of layoffs and the potential launch of its lossless streaming offering. While it may seem like Spotify is losing a battle with rights and payouts, the company needs to find a way to turn the tables. These recent increases could be taken as a signal that they may be in dire straits.
