Spotify Raises Prices for Second Time in 12 Months
Spotify is raising the prices of its premium plans in the United States, saying it aims to invest in its product features.
Beginning immediately for new subscribers and on the July billing date of existing subscribers, the new prices for the plans are $11.99 for Individual, $16.99 for Duo, $19.99 for Family and $5.99 for Student, the streaming service said in a Monday (June 3) blog post.
The first three prices are up from $10.99, $14.99 and $16.99 respectively. The price of the Student plan is unchanged, CNBC reported Monday.
Spotify last raised its prices in July 2023, when it increased the prices of all four plans, the report said.
“So that we can continue to invest in and innovate on our product features and bring users the best experience, we occasionally update our prices,” Spotify said in its Monday blog post.
This announcement comes about six weeks after Spotify said during an earnings call that 2024 will be a “year of monetization” after making gains in revenue growth, margin expansion and enhanced efficiency.
During the first quarter, the streaming service saw year-over-year gains of 19% in monthly active users, 14% in subscribers and 20% in total revenue, Spotify reported on April 23.
The company also reported that it had made value enhancements across its music, video and podcasting platforms. For example, it expanded its library of over 100 million music tracks.
“And that’s also why you saw us having a healthy guidance on the subs [subscriber] number too, because we think consumers like what they’re seeing from Spotify,” Daniel Ek, founder and CEO of Spotify, said during the call. “They love the offering and they feel that the value that they’re getting is more than fair.”
In October 2023, following the prices hikes for its subscription plans made in July, which resulted in monthly bills increasing by $1 to $2, depending on the specific plan, Spotify reported that “the early effects of price increases” played a significant role in the company’s 11% year-over-year revenue growth.
It also reported that it had raised prices without significant loss of subscribers, indicating that users value the platform.
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