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Spotify has announced that it will be raising prices for its 200 million ad-free subscribers, marking the first price increase in over a decade. In the UK, individual plans will now cost £10.99 per month, premium duo plans will be priced at £14.99 per month, and family plans will be available for £17.99 per month. Notably, the student plan will remain unchanged at £5.99 per month.
This decision comes in line with other streaming services that have also implemented similar subscription cost adjustments. The price hikes extend to various regions, including the US, Canada, and 49 other territories.
For US customers, the cost of an individual plan will rise from $9.99 to $10.99 (£8.57), the premium duo plan will increase from $12.99 to $14.99, the family plan will go up from $15.99 to $16.99, and the student plan will see a minor increase from $4.99 to $5.99.
“So that we can keep innovating, we are changing our Premium prices across a number of markets around the world,” the music streaming service said on Monday.
“These updates will help us continue to deliver value to fans and artists on our platform.”
Spotify said users “will be given a one-month grace period before the new price becomes effective, unless they cancel before the grace period ends”.
In 2021, Spotify implemented price increases for its family plans in the US and for student, duo, and family plans in the UK. However, individual subscriptions remained unaffected by the price change.
Notably, other major streaming services like Apple Music, Peacock, Netflix, HBO Max, and Paramount+ have also recently raised their subscription prices.
With the latest price adjustment, Spotify’s Premium cost now aligns with the monthly plans offered by its competitors, such as Apple Music and Amazon Music.
In an April earnings call, Swedish CEO Daniel Ek said the company would “like to raise prices in 2023”.
“When the timing is right, we will raise it and that price increase will go down well because we’re delivering a lot of value for our customers,” Mr Ek said.
In January, the music giant Spotify made a decision to reduce its workforce by 6%, with the stated goal of enhancing efficiency within the company.
Despite the staff cuts, Spotify will maintain its free plan option for users, which includes advertising.
Currently, Spotify boasts an impressive user base of 515 million active users across more than 180 markets. Approximately 40% of these users have opted to become paying subscribers.
To keep stakeholders informed, the company is scheduled to release its latest financial results on Tuesday. This update will provide insights into Spotify’s performance and financial health.
