NEW YORK — Spotify is once again raising its prices, less than a year after its last price increase for most subscription plans.
This latest price hike is due to the rapidly increasing costs of doing business for streaming media companies, while customers are becoming increasingly dissatisfied with rising prices as inflation remains high.
Starting in July, Spotify’s US subscribers will see a $1 per month increase for its ad-free premium plan, now priced at $11.99 per month — a 20% increase over the past two years. The streaming service stated that it is raising prices to “continue to invest in and innovate on our product features and provide users with the best experience.”
Spotify is becoming more expensive for new and current subscribers starting in July.
Some of Spotify’s other plans are also seeing price increases. The Duo plan, which allows two people to share a premium plan, will go up by $2 to $16.99 per month. The family plan will now cost $19.99 per month, an increase of $3.
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Spotify recently raised subscription prices for international users, made cost cuts, and went through several rounds of layoffs including significant reductions to its podcast business.
Streaming services, both for music and TV, are becoming increasingly expensive for consumers as companies strive for profitability in the highly competitive market. Paramount, Warner Bros. Discovery (CNN’s parent company), NBCUniversal, and even Netflix have all raised prices in the past year to drive towards profitability.
Shares of Spotify (SPOT) rose over 2% in premarket trading, and the stock has seen a nearly 60% increase for the year.
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