Spotify informed subscribers today via email of an increase to its Premium monthly subscription, marking the third price hike from the company in the last 2.5 years. The cost of a Premium individual monthly subscription will increase from $12 to $13, effective with users' February billing date. New subscribers are already seeing the advertised higher prices.
While the email focused on the individual Premium plan, other subscription tiers are also affected. Student monthly subscriptions will increase to $7 from $6, Duo plans for two accounts within the same household will rise from $17 to $19, and Family plans for up to six users will increase from $20 to $22. The Basic plan, priced at $11 per month and available only as a downgrade option for some Premium subscribers, remains unchanged.
For many years, Spotify maintained stable subscription prices. The recent series of increases began in July 2023, with another price adjustment occurring in July 2024. The July 2024 increase saw Premium individual subscriptions move from $11 to $12, Duo subscriptions from $15 to $17, and Family subscriptions from $17 to $20.
The reasons behind these price hikes are not explicitly stated by Spotify in its communications. However, industry analysts suggest that rising licensing costs for music content and the company's continued investment in podcasting and other audio content are likely contributing factors. The company faces pressure to demonstrate profitability to investors while also maintaining a competitive edge in the streaming market.
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