Spotify Raises Premium Plan Prices: What This Means for Subscribers and the Competition

Spotify Raises Premium Plan Prices in Multiple Markets

Spotify has announced that it’s raising its premium plan prices, confirming reports that first started to surface over the weekend.

The music-streaming giant, which claims some 500 million users globally 40% of which are premium subscribers, revealed that its main premium ad-free subscription plan will be increasing from $9.99 per month to $10.99 in the U.S., while its Duo plan is rising by $2 to $14.99. The family plan, meanwhile, is increasing by $1 to $16.99 and the student plan is also going up by dollar to $5.99 each month.

The subscription hike isn’t limited to the U.S. market, with Spotify confirming that it will be increasing its prices in dozens of markets, including much of the European Union (EU), the U.K., and chunks of South and Central America, Asia, and Oceania.

The company hasn’t communicated prices for these markets yet, saying that those affected will start receiving emails from today confirming their new rates. However, the updated prices have started showing up on their local landing pages. It seems that Eurozone customers are seeing single-euro increases on the individual premium plan, however prices already vary across the region so the new price will depend on where you live — in Finland, for example, it has gone up €1 to €11.99 per month, whereas in France it’s risen to €10.99. Germany, on the other hand, seems to be staying the same at €9.99 per month.

In the U.K., premium subscribers will pay an extra £1 at £10.99 a month.

Earnings

The price increase is notable, insofar as it’s the first time that Spotify has altered its core premium pricing plan in many of its core markets, including the U.S. and large parts of Europe, whereas streaming counterparts such as Netflix have regularly updated their pricing tiers through the years.

It’s also worth noting that today’s announcement comes a day before Spotify is due to report its Q2 2023 earnings, with a price-hike one obvious conduit for the Swedish company to increase its revenues in its push toward sustained profitability — and, ultimately, keep its shareholders happy.

Apple also increased its premium subscription from $9.99 to $10.99 last October, so today’s news essentially aligns Spotify with its main music-streaming rival.

Reports surfaced earlier this year that Spotify is working on a new subscription plan that will give users access to higher quality “lossless” music, and is reportedly set to launch in the U.S. later this year with a tentative price of $19.99 per month.

of Spotify’s Price Hike

Spotify has confirmed its decision to increase prices for its premium plans, affecting markets in the U.S., Europe, and various parts of the world. The popular music-streaming service, with a global user base of 500 million, including 40% premium subscribers, announced that its main premium ad-free subscription plan will rise from $9.99 to $10.99 in the U.S. Subscribers to the Duo plan will experience a $2 increase, bringing the monthly cost to $14.99. The family plan will also see a $1 hike, making it $16.99 per month. Similarly, the student plan will now cost $5.99 instead of $4.99 per month.

Encouraging

Spotify will not only raise prices for its U.S. customers but also for those in multiple international markets such as Europe, the UK, South and Central America, Asia, and Oceania. While specific prices for each market have not been disclosed, affected users will receive emails notifying them of the new rates. It is worth noting that Eurozone customers are already witnessing an increase of one euro on the individual premium plan, but the final price will depend on the country of residence. For instance, in Finland, the premium plan has risen by €1 to €11.99 per month, while France has experienced an increase to €10.99. Germany, however, has seen no change, staying at €9.99 per month. In the UK, premium subscribers will pay an additional £1, totaling £10.99 per month.

Spotify’s Drive Towards Sustained Profitability and Competition

This pricing adjustment marks a significant change for Spotify, as it is the first time the company has revised its core premium pricing plan in many key markets. In contrast, other streaming platforms like Netflix regularly update their pricing tiers. The timing of this announcement is noteworthy as it precedes Spotify’s Q2 2023 earnings report. The price hike provides a clear pathway for the Swedish music-streaming giant to increase revenues and aim for sustained profitability, ultimately satisfying its shareholders. Furthermore, this move aligns Spotify with its main music-streaming rival, Apple, which similarly raised its premium subscription cost from $9.99 to $10.99 in October of the previous year.

Forthcoming Subscription Plan for Enhanced Music Quality

Reports earlier in the year confirmed Spotify’s development of a new subscription plan. This upcoming plan will offer users access to higher quality “lossless” music. It is anticipated that this new plan will launch in the U.S. later this year, with a tentative pricing of $19.99 per month.

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