Spotify has finally increased its prices for the first time.
The popular audio-streaming platform recently announced it is finally implementing its planned subscription fee increase after announcing its intention to do so last week.
Spotify is the latest of the popular streaming services to raise their subscription fees due to the industrywide focus on efforts to boost profitability.
Spotify Price Increase
Spotify mentioned in its announcement that it raised its prices to keep innovating in light of the evolving market landscape it found itself in since its launch in 2008. According to the company, this price increase will help it continue to "deliver value to fans and artists on [its] platform."
As expected, the company is raising its ad-free premium plan for one account by a dollar, meaning it now costs $10.99 or $ 11 to subscribe to such a plan. Spotify also raised its Family and Student plans by a dollar - they cost $15.99 and $4.99 monthly before, and now they cost $16.99 and $5.99, respectively.
The only plan Spotify didn't give a dollar increase is its Duo plan - it got a $2 increase, bringing its original $12.99 monthly price tag to $14.99 or $15.
People about to subscribe to Spotify must pay the new prices for their subscription starting July 24; Spotify changed the price displayed for its Premium Individual plan as soon as it released its announcement.
Spotify's FAQ page about the price increase states that existing Spotify Premium plan subscribers will get a notification via email about it and be given a one-month grace period before they pay the new prices. Of course, that's if they didn't cancel their subscription before their next billing period.
Subscribers on a trial offer will also get a one-month grace period and pay for it at its original price. They will only pay for their subscription under the new prices after their trial period ends.
Spotify gift cards are still redeemable even if they were bought at a lower price, though they can only be redeemed on the Premium Individual plan.
Spotify mentioned that people in the following countries will start paying the increased prices to subscribe to its streaming services:
- Andorra
- Albania
- Argentina
- Austria
- Australia
- Bosnia and Herzegovina
- Belgium
- Bulgaria
- Brazil
- Canada
- Chile
- Colombia
- Costa Rica
- Cyprus
- Denmark
- Ecuador
- Estonia
- Spain
- Finland
- France
- United Kingdom
- Greece
- Guatemala
- Hong Kong
- Croatia
- Indonesia
- Ireland
- Israel
- Iceland
- Italy
- Lithuania
- Luxembourg
- Latvia
- Monaco
- Montenegro
- North Macedonia
- Malta
- Mexico
- Netherlands
- Norway
- New Zealand
- Peru
- Portugal
- Serbia
- Sweden
- Singapore
- Slovenia
- Slovakia
- San Marino
- Thailand
- Türkiye
- United States
- Kosovo
For Profitability
Spotify's price increase is an inevitable decision for the company as other streaming companies have previously decided to enact similar price increases on their services. It joins the likes of Google, NBCUniversal, Netflix, HBO, Paramount, and Disney with its price increase.
While Spotify did mention that the price increase was meant to help it innovate in an evolving market, it may also be motivated by its desire to become profitable at a time when inflation and economic uncertainties have plagued companies and consumers alike.
Interestingly, Spotify's price increase further solidifies the end of an era for the streaming industry when companies are willing to ask for low prices for their streaming services to attract subscribers on launch and beyond.
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