Spotify is raising prices for premium streaming subscriptions

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Spotify is raising rates for its monthly streaming subscriptions in the US for the second time in a year.

The Spotify Premium Individual subscription will increase by $1, from $10.99 to $11.99 per month, according to the company’s updated price lists. The Premium Family plan, which offers access to up to six members per household, will increase by $3, from $16.99 to $19.99 per month.

In the US – Spotify’s largest market – the company raised prices for its subscriptions in July 2023, the first time it has raised rates since launching in the country in 2011.

“As we continue to expand our platform, we are updating our Premium pricing so we can continue to innovate in changing market conditions,” the company said in an FAQ about the price increases on its customer service site. “These updates will help us continue to deliver value to fans.”

According to the company, existing Spotify Premium subscribers will be notified via email and will be given a one-month grace period before the new price takes effect unless they cancel before the grace period ends.

Meanwhile, Spotify’s Premium Duo plan (which offers two accounts) is increasing by $2, from $14.99 to $16.99 per month in the US. Spotify’s Student plan remains $5.99/month and includes access to Hulu with ads; which is only available to students enrolled in an “accredited institution of higher education.”

Spotify had 239 million Premium customers worldwide at the end of the first quarter of 2024, a gain of 3 million in the period. In total, the audio streamer has 615 million listeners worldwide (free and paid).

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During the Q1 earnings call with analysts, Spotify CEO Daniel Ek said the company regularly evaluates its “value-to-price ratio” against subscription prices and occasionally chooses to increase rates, but he did not provide details on specific planned increases. at the time. “We are constantly looking at how much value we add, how consumers respond… and what the fair price is for good value for money,” Ek said on the April 23 call.

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