Spotify is joining other streaming services in raising its prices, increasing plan costs by $1-$2, depending on the plan.
The Premium Individual plan will now be $11/mo., up from $10/mo. while the Duo plan for two accounts is $15/mo., up from $13/mo. The Family plan, which provides access for up to six accounts, is now $17/mo. versus $16/mo., and the discounted Student plan is $6/mo., up from $5/mo.
Spotify launched back in 2008, and continues to innovate by adding new music, features, and more. Some of the latest innovations include an AI DJ, the fan experience Blend, and new podcasts and audiobook content. The music and audio streaming service, which offers podcasts and audiobooks as well, has more than 200 Premium subscribers, while there’s also a free tier where people can sign up for free and listen with ads.
The Premium subscription, however, offers access to on-demand and ad-free music, offline music downloads, and music streaming. And it will be increasing in price in various markets, including both Canada and the U.S.
Spotify says the higher fees will allow the company to “keep innovating in the changing market conditions…These updates will help us continue to deliver value to fans and artists on our platform.”
Those who are already subscribed to Spotify will likely have already received an e-amil advising of a two-month grace period before the new price comes into effect. This also includes people who are currently enjoying a trial offer. New Spotify subscribers, meanwhile, will pay the current fees from the get-go. Those who wish not to pay the new fees can cancel at any time, avoiding the next payment as long as they cancel before the next billing period.
Apple, YouTube Premium, and Amazon Music all also recently increased pricing, in most cases by the same $1 to $2 per month increase. The extra $12-$24 annually doesn’t seem like much to stomach, but it will add a hefty sum to the bottom line.
During Spotify’s earnings call back in April, CEO Daniel Ek said the company is “trying to focus on how can we optimize for growth. We’re thinking about how to increase growth, and the industry realizes that, and our label partners realize that as well.”