Spotify, the premier music streaming platform, has announced a price increase for its premium subscriptions in the United States, effective immediately.
Starting today, the cost for ad-free individual plans will increase by $1, bringing the monthly fee to $11.99. Duo plans will see a $2 hike to $16.99 per month, while family plans will rise by $3 to $19.99 per month. Student plans will remain at the current rate of $5.99 per month.
Spotify stated in a blog post, "To ensure we continue to invest in and innovate our product features, and provide the best possible user experience, we periodically update our prices."
These new rates apply to new subscribers right away, while existing subscribers will see the changes reflected in their bills starting next month.
Based in Stockholm with significant operations in Los Angeles, Spotify offers an extensive library of music, audiobooks, and podcasts. The platform boasts 615 million users worldwide, with 239 million subscribing to its premium service for an ad-free experience. Users who opt not to pay can still access the service with ads.
The company's recent focus has been on increasing profitability. Last year, Spotify reduced its workforce after extensive investments in podcast content with influencers and high-profile personalities. In April, the company reported its highest quarterly gross profit to date.
Following the price hike announcement, Spotify's stock saw a 5% increase on Monday morning, reaching $312.07 per share.
Under CEO Daniel Ek's leadership, Spotify is following a trend among streaming services to raise prices as investor focus shifts from subscriber growth to profitability. This marks the second time since July that Spotify has increased its U.S. subscription prices.
