Spotify has revealed details on its second planned price hike in the US within a year. The streamer will again raise its individual Premium plan prices by $1 per month, Spotify’s rate above that of competitors Apple Music and Tidal, with some subscribers paying even more.
The monthly cost for the Spotify Premium Individual plan will now be $11.99. Meanwhile, the Premium Family plan, accommodating up to six household members, will see a $3 increase from $16.99 to $19.99. Additionally, the Premium Duo plan, which covers two accounts, will also see a price adjustment, increasing by $2 to $16.99 per month.
The Spotify Student plan remains unchanged at $5.99 per month.
Apple Music and Tidal both offer individual plan prices at $10.99 per month and its family plan at $16.99 per month, after Tidal cut its rate in half in April. Apple last raised its prices in 2022.
Spotify’s newest adjustment follows a previous increase in July 2023, the first since the company’s US launch in 2011. The streamer initially said the adjustment was to cover audiobook costs after Spotify gave Premium users 15 “complementary” hours of audiobook listening time per month at the end of 2023.
Despite implementing a price increase in July, Spotify has not seen a decline in subscriber growth, which has emboldened the company to pursue further adjustments amid pressure from shareholders to boost profitability. As of the first quarter of 2024, Spotify reported having 239 million Premium subscribers globally, showing a growth of 3 million subscribers in that quarter. In total, the platform has 615 million users worldwide.
The audio giant forecasted a second-quarter operating income of €250 million, with anticipated revenues of €3.8 billion as Spotify plans price increases the UK, Australia, and Pakistan as well.
Subscribers will be notified about the price changes via email and will have a one-month grace period to either accept the new rates or cancel their subscriptions.
