Technology
Monday, June 3rd, 2024 3:20 pm EDT
Key Points
- Second Price Hike: Spotify is increasing the cost of its premium subscription plans in the U.S., marking the second price hike in a year.
- New Subscription Rates: The new pricing will be $11.99 for the Individual plan, $16.99 for the Duo plan, and $19.99 for the Family plan, while the Student plan remains at $5.99.
- Reason for Increase: Spotify cites the need to continue investing in and innovating its product features as the reason for the price hike.
On Monday, Spotify announced a price increase for its premium subscription plans in the U.S., marking the second price hike by the Swedish music-streaming company in a year. Over the next month, U.S. users will be notified of the new subscription rates. This announcement positively impacted Spotify’s market performance, with shares rising over 4% on Monday morning.
The new pricing structure will see the “Individual” plan costing $11.99, the “Duo” plan $16.99, and the “Family” plan $19.99. The “Student” plan remains unchanged at $5.99. Spotify justified this increase by stating that it needs to continue investing in and innovating its product features, as mentioned in a blog post.
This follows a previous price adjustment in July 2023, where the Individual plan was raised to $10.99, and the Duo, Family, and Student plans were increased to $14.99, $16.99, and $5.99, respectively. At that time, Spotify cited the evolving market landscape as a reason for the adjustment.
The move aligns Spotify with its competitor, Apple Music, which raised its subscription costs in late 2022. As per Apple’s website, an individual subscription starts at $10.99 per month.
These changes reflect the broader trend in the music streaming industry towards higher subscription fees, driven by the need for continuous innovation and improvement of service features. This ensures that companies like Spotify can sustain and enhance their offerings in a competitive market.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/03/spotify-price-increased-again.html
