Spotify informed subscribers today of an increase in Premium monthly subscription prices, marking the third price hike from the company in the last 2.5 years. According to an email sent to subscribers, the cost of a Premium individual monthly subscription will increase from $12 to $13, effective with users' February billing dates. 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 rise from $6 to $7, Duo plans (for two accounts in the same household) will increase from $17 to $19, and Family plans (for up to six users) will jump from $20 to $22. The Spotify Basic plan, a downgrade option available to some Premium subscribers at $11 per month, remains unchanged.

This latest adjustment follows previous price increases in July 2024, when Premium individual subscriptions went from $11 to $12, Duo subscriptions from $15 to $17, and Family subscriptions from $17 to $20. For many years prior to July 2023, Spotify maintained stable subscription prices.

The reasons behind these repeated price increases are not explicitly stated by Spotify. 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 increase revenue and achieve profitability while remaining competitive in the streaming market.

The implications of these price hikes for consumers are varied. Some subscribers may find the increased cost negligible and continue their subscriptions uninterrupted. Others may explore alternative music streaming services or consider downgrading to cheaper plans, including ad-supported free options. The long-term impact on Spotify's subscriber base and market share remains to be seen.