Music Streaming Service Raises Cost
Spotify is hiking the prices of its premium plans for the second time in a year, a sign that streaming inflation is still running hot.
The music streaming giant said on Monday that it is adjusting the prices for all of its premium plans, with the individual plan rising by $1 per month to $11.99, the duo plan rising by $2 per month to $16.99, the family plan rising by $3 per month to $19.99. The student plan, which is offered at a discount to verified students, remains at $5.99.
The prices go into effect immediately for new subscribers, with existing subscribers getting an email explaining the new prices over the next month, after which the new prices will be in effect.
The company last hiked prices in the U.S. last July.
In the email, Spotify writes that it is changing the prices “so that we can continue to invest in and innovate on our product features and bring users the best experience.”
Streaming services, both audio and video, have been aggressively raising prices over the past year. While historically many services have gone a couple of years in between price hikes, the move by Spotify suggests that companies may be more aggressive in 2024 when it comes to charging more.
Generally, when one player in the space moves to raise prices, others follow.
In its last quarter, Spotify reported 293 million paying subscribers. CEO Daniel Ek said at the time that the company would be flexible with pricing, offering new products like audiobook-only and music-only tiers.
