Spotify, the popular music streaming service, announced on Monday its decision to raise the prices of its Premium subscription offerings by up to $2, resulting in a significant 20 per cent increase for some subscription plans.
In a blog post, the company stated that the market landscape has been continuously evolving since Spotify's initial launch, and these changes are aimed at enabling the company to maintain its commitment to providing value to both fans and artists. The adjustments in pricing are part of Spotify's efforts to sustain its growth and innovation in response to changing market conditions.
As per the updated pricing structure, Spotify's Premium Individual plan in the US will now cost $10.99, marking a $1 increase from its previous $9.99 rate. Similarly, the Premium Duo plan will see a $2 increase, rising from $12.99 to $14.99. For the Premium Family plan, subscribers will have to pay $16.99 instead of the previous $15.99. Additionally, the student offering will be priced at $5.99, up from $4.99.
The news of the price hike impacted Spotify's stock performance, with shares closing down more than 4% on Monday.
Notably, this price adjustment extends beyond the US, as Spotify also plans to increase subscription prices in several other countries, including Canada, France, the UK, Mexico and Australia. The company stated that existing subscribers would be notified of the impending changes via email and will be provided with a "one-month grace period" before the new pricing goes into effect.
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