Spotify has announced a price hike for its U.S. premium subscriptions, marking the second increase within a year. The individual premium plan will rise from $10.99 to $11.99 per month, reflecting a near-10% increase.
New Pricing Details
- Individual Plan: $11.99 (up from $10.99)
- Duo Plan: $16.99 (up by $2)
- Family Plan: $19.99 (up by $3)
- Student Plan: Remains at $5.99 per month
Financial Performance and Competitive Landscape
This price adjustment follows Spotify’s strong financial performance, which includes:
- A 20% increase in revenue
- A 14% increase in premium subscribers
- Record quarterly profits
Despite these gains, the new pricing structure places Spotify above its major competitor, Apple Music, which continues to charge $10.99 for individual plans and $16.99 for family plans.
Historical Context
The increase follows a similar announcement last July, where:
- The U.S. individual premium plan increased from $9.99 to $10.99
- Duo, Family, and Student plans also saw increases
Notification to Subscribers
- New Subscribers: New pricing is applicable immediately as of today.
- Existing Subscribers: The new rates will apply from their July billing date. Spotify will send email notifications to all premium subscribers regarding the price increase.
Conclusion
This price change highlights Spotify’s strategy to enhance profitability while maintaining competitive positioning in the market. As the streaming service continues to grow its user base and revenue, these adjustments reflect its ongoing efforts to balance financial health with market demands.
