Uninterrupted music from Spotify is set to cost you a bit more as the company has decided to increase the prices for its Premium plans. The company’s move signifies the first rise in cost since its inception over a decade ago in the United States. The price increase will be reflected across all Premium packages, including Single, Family, Student, and Duo plans.
The details of the price hike
For Premium Single subscribers, the monthly rate is moving up by $1, from $10 to $11. Similarly, the Premium Family and Student plans are each experiencing a $1 price rise, coming in at $17 and $6 per month, respectively. The Premium Duo package witnesses the highest increment, a $2 jump, shifting from $13 to $15 per month.
| Plan Type | Previous Price (per month) | New Price (per month) |
|---|---|---|
| Premium Single | $10 | $11 |
| Premium Family | $16 | $17 |
| Premium Student | $5 | $6 |
| Premium Duo | $13 | $15 |
Spotify’s reaction to competitors’ pricing
This step by Spotify mirrors the price increases undertaken by competitors such as Apple Music, Amazon Music, and YouTube Music, which elevated their ad-free individual plans to $11 over the past year. Spotify CEO Daniel Ek showed a surprisingly positive response to the competitors’ rising costs, stating that it would benefit Spotify. He expressed a desire to upcharge subscriptions, particularly in the U.S, and seemed certain that this could be accomplished by 2023.
Will user growth be affected?
While prices rise, Spotify’s popularity seems to remain undeterred, with a reported growth of five million new users in the first quarter of 2023 worldwide. The additional $12 a year might not significantly deter this growth trajectory. The updated prices are being introduced globally, affecting users from the United Kingdom to Thailand. Spotify plans to notify users about the rate changes and their implementation dates via email.
As we adapt to these pricing changes, we would love to hear your thoughts. How do you feel about the price increases for Spotify’s Premium plans? Share your views in the comments section below!
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