London, UK: Digital music service Spotify has raised prices for its 200 million ad-free subscribers across countries, including the US, UK, and Australia.
Prices will rise in the UK by $1.28 (£1) a month, to $14.11 (£10.99) for an individual plan, $19.24 (£14.99) for a premium duo plan, and $23.09 (£17.99) for a family plan. The price of the student plan stays the same at $7.69 (£5.99). In a US plan, the price will rise by $1 a month, with the premium single now starting at $10.99, the duo at $14.99, the family at $16.99, and the student plan at $5.99. According to the reports, similar price hikes have also applied to over 50 countries.
In recent months, Spotify has taken action to increase its profit margins. This involved laying off hundreds of employees and reorganising its podcast division, which the company had previously invested billions of dollars to build up. The restructuring aims to find resources and improve the financial performance of the company.
The other streaming services, including Apple Music, Peacock, Netflix, Max, and Paramount+, have also raised subscription prices following Spotify’s movement.
“So that we can keep innovating, we are changing our Premium prices across a number of markets around the world. These updates will help us continue to deliver value to fans and artists on our platform,” the music streaming service stated.
Spotify remarked that users “will be given a one-month grace period before the new price becomes effective unless they cancel before the grace period ends.”
The new Spotify Premium cost matches the monthly plans of competitors Apple Music and Amazon Music, as per the statement.
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